Multiple Choice
Mike and Mary each produce two goods.According to the principle of comparative advantage,the total output produced by the individuals will be greatest
A) if Mary produces both goods and Mike produces nothing.
B) if each good is produced by the individual who has the lower opportunity cost of producing the good.
C) if each good is produced by the individual who has the higher absolute cost of producing the good.
D) if Mike produces both goods and Mary produces nothing.
Correct Answer:

Verified
Correct Answer:
Verified
Q43: Quotas and tariffs both serve the purpose
Q78: Specialization and international trade lead to<br>A)an outward
Q80: What do you think are the main
Q82: The principle of comparative advantage essentially states
Q84: In general,higher imports-to-GDP ratios are more likely,the<br>A)smaller
Q85: List and explain fully the arguments against
Q86: Specialization can lead to an increase in
Q87: The Uruguay round of GATT talks resulted
Q148: Comparative advantage is defined as<br>A) producing all
Q274: Specialization in trade will be economically efficient