Which statement is true? a) Comparative advantage is not necessary for trade to take place, but absolute

Question:

Which statement is true?

a) Comparative advantage is not necessary for trade to take place, but absolute advantage is.

b) Absolute advantage is not necessary for trade to take place, but comparative advantage is.

c) Both absolute and comparative advantage are necessary for trade to take place.

d) Neither absolute nor comparative advantage is necessary for trade to take place.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 9780077641542

11th Edition

Authors: Stephen Slavin

See More Books

Question Posted: Mar 01, 2024 11:01 PM

See More Questions

MCQ questions: 1. An increase in oil prices, such as the oil shocks in the 70s, lead to _______ thereby causing ________ a movement along the AS curve; cost-push inflation a leftward shift in the AS...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Q1. You have identified a market opportunity for home media players that would cater for older members of the population. Many older people have difficulty in understanding the operating principles...
Lets assume you have been offered a job by Jekyll Corporation, a company in the consumer products industry. The job is in your chosen career path. Jekyll Corporation has offered you a position that...
What is sexual harassment and under what circumstances might an employer be liable?
Nitrogen gas is confined in a cylinder with a movable piston under a constant pressure of 9.95 10 4 Pa. When 695 J of energy in the form of heat is transferred from the gas to the surroundings, its...
Parent S requires three of component T and two of component U. Both T and U are run on work center 30. Setup time for T is 7 hours, and run time is 0.1 hour per piece. For component U, setup time is...
What proportion of secretaries of Fortune 500 companies has a personal computer at his or her workstation? You want to answer this question by conducting a random survey. How large a sample should...
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a...
Which statement is true? a) There are basically no arguments that can be made on behalf of trade protection. b) The arguments for trade protection are more valid than the arguments for free trade. c)...
Which statement is the most accurate? a) The United States can be described as a purely free trading nation. b) The United States is one of the most protectionist nations in the world. c) The rich...
We know that the average IQ of everyone in the United States is 100. We randomly select 10 people and observe that their average IQ is 105. a. The value of 105 is a . b. The value of 100 is a .
2.11.2Project:Performance Task: The Parallax Problem Project Geometry Sem 1 (S3537251) Julio Duenas Points possible:120 Date: ____________ The Scenario:You're looking for a sponsor to pay for you to...
If the most common treatment of assigning overapplied overhead was used, the final balance in Cost of Goods Sold would have been * (1 Point) At the end of the last fiscal year, BREAD Company had the...
Angelina received new word processing software for her birthday. She also received a cheque with which she intends to purchase a new computer. Angelina's UNILUS Professor assigned a paper due in two...
At date t, the portfolio P to be hedged is a portfolio of Treasury bonds with various possible maturities. Its characteristics are as follows: Value YTM MD Convexity $1,450 6% 4.25 55 We consider...
A playground merry-go-round with an axis at the center (radius R = 1.3 m and rotational inertia | = 1.2 x 103 kgm2) is initially rotating at angular velocity w = 0.21 rad/s clockwise). A girl of mass...
Construct the market supply schedule of jet-ski rides. The table gives the supply schedules for jet-ski rides by the only suppliers: Rick, Sam, and Tom. Quantity suppli (rides per day) Price (dollars...
Problem 2. (0.6 points, 0.2 points for each question) (a) A company turns its inventory 2 times a month. Its months-of-supply = Its days-of-supply = Please show your analysis below: _months. days. (1...
What would you expect to happen to market supply if variable costs decreased for individual firms in the market?
What would you expect to happen to market supply if variable costs decreased for individual firms in the market?
Suppose that the airline industry is in long-run equilibrium when the price of gasoline increases, raising the cost of operating airplanes. In the long run, what do you expect to happen to the number...
Suppose Universal Forests current stock price is $59.00 and it is likely to pay a $0.57 dividend next year. Since analysts estimate Universal Forest will have a 13.8 percent growth rate, what is its...
ABC Company engaged in the following transaction in October 2 0 1 7 Oct 7 Sold Merchandise on credit to L Barrett $ 6 0 0 0 8 Purchased merchandise on credit from Bennett Company $ 1 2 , 0 0 0 . 9...
1. Use the Excel file Asset Allocation Data to determine the following: a.Variances for the individual assets b. Standard deviations for the individual assets c.Covariances between each pair of...

Which statement is true? a) Comparative advantage is not necessary for trade to take place, but absolute

Question:

Step by Step Answer:

Answer b Absolute advantage is not necessary for trade to take place ...View the full answer

Microeconomics

Students also viewed these Business questions