Multiple Choice
According to the principle of comparative advantage, specialization and trade increase a nation's total output because:
A) resources are directed to their highest productivity.
B) the output of the nation's trading partner declines.
C) the nation can produce outside its production possibilities frontier.
D) the problem of unemployment is eliminated.
Correct Answer:

Verified
Correct Answer:
Verified
Q77: Assume that two countries (Home and Foreign)
Q78: (Table: Output in the United States and
Q79: Which of the following is the MOST
Q80: Suppose that the U.S. price index for
Q81: (Figure: International Trade Equilibrium) Assume that this
Q83: An increase in the price of imported
Q84: A country's indifference curve describes combinations of
Q85: (Figure: International Trade Equilibrium) Which line shows
Q86: (Figure: International Trade Equilibrium) Which point shows
Q87: Assume that Germany and China can produce