Question 1
According to comparative advantage, trade between two countries
◦ maximizes the amount of inputs that are used in the production of all products.
◦ guarantees that consumption levels will be equal in the two countries.
◦ will benefit all the industries in each of the countries.
◦ allows each of the trading countries to allocate its resources most efficiently.
Question 2
When countries specialize in producing those goods in which they have a comparative advantage, they
◦ maximize their combined output, but they do not necessarily allocate their resources more efficiently.
◦ maximize their combined output and allocate their resources more efficiently.
◦ allocate their resources more efficiently, but they do not necessarily maximize their combined output.
◦ do not necessarily maximize their combined output, and they also do not necessarily allocate their resources more efficiently.
Ecological footprints of different countries.
Comparative sizes of the Earth and the Moon
Worldly Goods
Countries with the Greatest Oil Reserves
Newly Industrialized Countries
Skin color is a polygenic trait controlled by three or four genes, producing a wide range of phenoty