Question

B) Outuums C) Retailing D) Exporting 41. A nation has a in the production of a good if it can produce that good more effectively or efficiently than it can produce other goods. A) supreme advantage B) primary efficiency c) qualified advantage D) comparative advantage 42. Countries with a low standard of living and quality of life are called: A) industrialized nations. B) Well-endowed societies. c) developing countries. D) opportunities of free trade. 43. Which theory states that a nation should produce and sell goods to other countries that it produces most efficiently, and buy goods produced more efficiently by other countries? A) comparative advantage. B) absolute advantage. C) mercantilism. D) bilateral advantage. 44. Maureen, a United States resident, was surprised to see that her home computer was actually made in Japan. Maureen did not know she had purchased a(n): A) imported item. B) exported item. C) protected good. D) generic good. lu 45. Which of the following statements about capitalism is the most accurate? A) In capitalist economies, most resources are owned by the government. B) One strength of capitalism is its ability to deal with environmental problems. One su C) Capitalism is characterized by significant inequality in the distribution of wealth and income. drawback of capitalism is that people have little freedom to pursue their own goals. D) A drawback of capitalismi

Answer 1

1) D) comparative advantage ( the basis on which trade occurs between countries , relative advantage )

2) C) Developing countries ( countries which are yet to reach potential )

3) A) comparative advantage ( relative advantage or opportunity cost of production of a good determines efficiency )

4) A) imported item ( Item imported from a foreign country )

5) C) Capitalism is characterized by significant inequality in the distribution of wealth and income ( in a capitalist economy , resources are owned by private capitalists who are profit makers and thus concentration of wealth occurs )