Multiple Choice
Improvements in productivity may lead to decreasing comparative costs if
A) the assumption of fixed technologies under constant costs is relaxed.
B) technologies available to each nation are maintained the same.
C) resource endowments do not vary.
D) comparative advantage does not change.
Correct Answer:

Verified
Correct Answer:
Verified
Q113: The mercantilists contended that because one nation's
Q114: John Stuart Mill's theory of reciprocal demand
Q115: The terms of trade represents the rate
Q116: Is it possible for comparative advantage to
Q117: In the absence of trade, a nation
Q119: Although J.S.Mill recognized that the region of
Q120: Because the Ricardian trade theory recognized only
Q121: The domestic cost ratios of nations set
Q122: An improvement in a nation's terms of
Q123: The trading-triangle concept is used to indicate