Author Question: Can a country have comparative advantage in all products? What will be an ideal ... (Read 71 times)

nelaaney

  • Hero Member
  • *****
  • Posts: 560
Can a country have comparative advantage in all products?
 
  What will be an ideal response?

Question 2

Both the ________ do not put a great deal of emphasis on the capital account.
 
  A) absorption and monetary approaches
  B) monetary and elasticities approaches
  C) elasticities and absorption approaches
  D) None of the above



rleezy04

  • Sr. Member
  • ****
  • Posts: 322
Answer to Question 1

No, a country can never have comparative advantage in all products, no matter how productive it is in general. Comparative advantage has to do with the relative price a country can produce one good or another in autarky versus the cost at which they can trade those goods with other economies. There will always be goods that are cheaper to produce in another country than at home, relative to the opportunity cost of not producing goods in which the country has comparative advantage.

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

For a complete list of videos, visit our video library