In economics, international trade is based on the existence of
A) absolute advantage between countries.
B) relative advantage between countries.
C) comparative advantage between countries.
D) output advantage between countries.
C
You might also like to view...
Which of the following statements is correct?
A. The value of the independent variable is determined by the value of the dependent variable. B. The value of the dependent variable is determined by the value of the independent variable. C. The dependent variable designates the "cause" and the independent variable the "effect." D. Dependent variables graph as upsloping lines; independent variables graph as downsloping lines.
Refer to Figure 6.1. Assume that L1 represents the budget line before a price change. Which change in budget lines represents compensation?
A. L1 to L2
B. L2 to L3
C. L3 to L2
D. L1 to L3