Which of the following is true?
A) Adam Smith proposed the theory of comparative advantage as the basis for trade in The Wealth of Nations.
B) David Ricardo proposed the theory of absolute advantage as the basis for trade.
C) Absolute advantage is based on comparing the opportunity costs of trading partners.
D) The Ricardian model assumes labor is perfectly mobile.
D
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Compare the long-run supply curve for a constant-cost industry, a decreasing-cost industry, and an increasing-cost industry. Give an example with an explanation for each
What will be an ideal response?
The justification for occupational licensing laws is that they protect the public from incompetent practitioners (for example, lawyers and medical doctors), but the laws also result in
A) higher prices and restrictions on the number of people who can enter the professions affected by the laws. B) economies of scale. C) ownership of a key input. D) an increase in the amount of output required to achieve minimum efficient scale.