Author Question: Which of the following is false? a. Once a country has a comparative advantage in producing a good, ... (Read 44 times)

swpotter12 · **on:** Jun 30, 2018

Which of the following is false?
a. Once a country has a comparative advantage in producing a good, that comparative advantage will always continue.
b. If you can mow the lawn at home faster than your younger brother, you have a comparative advantage over him in mowing the lawn.
c. Restrictions on trade will reduce people's degree of specialization according to comparative advantage.
d. As practice at producing what you have a comparative advantage in makes you better at it, your comparative advantage would tend to increase.

Question 2

If real GDP is increasing more rapidly than the population, then:
a. interest rates must be falling.
b. the economy must be experiencing inflation.
c. per capita real GDP will be increasing.
d. per capita real GDP will be decreasing.