Podcast
Questions and Answers
What aspect does the analysis of absolute advantage and comparative advantage focus on?
What aspect does the analysis of absolute advantage and comparative advantage focus on?
- Natural resources
- Capital
- Labor (correct)
- Technology
In the text, why do activists and protesters complain about trade?
In the text, why do activists and protesters complain about trade?
- Because trade has no effect on workers in developing countries.
- Because trade has negative effects on workers in industrialized countries. (correct)
- Because trade has no effect on workers in industrialized countries.
- Because trade has positive effects on workers in developing countries.
What is the most interesting case presented in the text regarding absolute advantage and comparative advantage?
What is the most interesting case presented in the text regarding absolute advantage and comparative advantage?
- North having an absolute advantage (correct)
- South having an absolute disadvantage
- North having an absolute disadvantage
- South having an absolute advantage
What is one of the three prominent questions examined in the framework of absolute and comparative advantage?
What is one of the three prominent questions examined in the framework of absolute and comparative advantage?
What is the main outcome for a country with a comparative advantage in some set of products?
What is the main outcome for a country with a comparative advantage in some set of products?
Why can products produced by low-productivity workers in the South compete successfully?
Why can products produced by low-productivity workers in the South compete successfully?
What is the main reason for the North's ability to successfully export products despite high wages?
What is the main reason for the North's ability to successfully export products despite high wages?
How does the concept of absolute advantage impact national wage levels and living standards?
How does the concept of absolute advantage impact national wage levels and living standards?
In the context of trade, what allows low-wage workers to shift to export-oriented industries in the South?
In the context of trade, what allows low-wage workers to shift to export-oriented industries in the South?
How do low wages in the South impact the cost of producing products?
How do low wages in the South impact the cost of producing products?
Flashcards are hidden until you start studying
