7. According to the theory of comparative advantage, countries gain from trade because
a. Trade makes firms behave more competitively, reducing their market power.
b. All firms can take advantage of cheap labor.
c. Output per worker in each firm increases.
d. World output can rise when each country specializes in what it does relatively best.
7. According to the theory of comparative advantage, countries gain from trade because
a. Trade makes firms behave more competitively, reducing their market power.
b. All firms can take advantage of cheap labor.
c. Output per worker in each firm increases.
d. World output can rise when each country specializes in what it does relatively best.
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8. |
© 2013 FLVS Based on the data in the chart, which of the following scenarios presents the most efficient use of resources? (5 points) | ||||||||||||||||
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9. |
According to the chart, which country has an absolute advantage over the other countries in oil production? (5 points) | |||||||||||||||
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10. | U.S. companies have made fewer manufacturing contracts with China in the last few years, preferring other countries in the region. Which of the following is a potential reason? (5 points) | ||||||||
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11. | The U.S. government wants to restrict Nation A's access to weapons-making materials. Which of the following actions will it most likely take? (5 points) | ||||||||
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12. | Because the United States has an embargo on Cuba, (5 points) | ||||||||
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13. | Globalization increases the interdependency of the world's countries. Inflation in one country would most likely (5 points) | ||||||||
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