If a country has a comparative advantage in the production of all goods, it should:
a. specialize in the production of goods with the lowest opportunity cost.
b. specialize in the production of goods with the highest opportunity cost.
c. specialize in the production of goods with the absolute advantage.
d. specialize in the production of goods without the absolute advantage.
e. not specialize at all and produce all the goods itself.
Question 2
The dominant school of economic thought until midway through the Great Depression of the 1930s was:
a. classical.
b. Keynesian.
c. monetarism.
d. supply-side.
e. rational expectations.
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