Author Question: In a two good, two-country world, a country has a comparative advantage in any good for which it has ... (Read 117 times)

sdfghj · **on:** Jun 30, 2018

In a two good, two-country world, a country has a comparative advantage in any good for which it has a:
a. lower absolute cost than the other country.
b. lower opportunity cost than the other country.
c. higher absolute cost than the other country.
d. higher opportunity cost than the other country.

Question 2

Prior to the Great Depression, classical economists believed that a recessionary downturn would be reversed by:
a. higher wages and prices.
b. lower wages and prices.
c. an expansionary monetary policy on the part of the Federal Reserve System.
d. an increase in government spending that would stimulate aggregate demand.