The study of the decision-making process of government is the study of:
a. Keynesian economics.
b. public choice theory.
c. rational expectations theory.
d. social economics.
Question 2
If nation A has a comparative advantage over nation B in the production of a product, this implies:
a. it requires fewer resources in A to produce the good than in B.
b. the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B.
c. that nation B could not benefit by engaging in trade with A.
d. that nation A should acquire this product by trading with B.
e. that nation A could not benefit by engaging in trade with B.
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