1.Which of the following is not a potential source of comparative advantage for China in the manufacturing sector?Select one:a. A large domestic market that can lead to scale economiesb. Abundant low wage, low skill workersc. Coastal areas with good logistics for international traded. Abundant credit from China's government sector to set up manufacturing operations3.China's economic reforms have focused onSelect one:a. reducing persistent inflation and current account deficits.b. reducing exchange rate instability.c. transitioning from socialism and toward private ownership.d. privatizing state-owned enterprises and increasing efficiency.4.EU deepening refers toSelect one:a. adding additional countries into the single currency area.b. legislation that restricts the sovereignty of individual countries.c. extending the boundaries of the EU to include new members.d. activities that cause increased levels of integration in the national economies.

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1. Which of the following is not a potential source of comparative advantage for China in the manufacturing sector? Select one: a. A large domestic market that can lead to scale economies b. Abundant low wage, low skill workers c. Coastal areas with good logistics for international trade

1. Which of the following is not a potential source of comparative advantage for China in the manufacturing sector? Select one: a. A large domestic market that can lead to scale economies b. Abundant low wage, low skill workers c. Coastal areas with good logistics for international trade

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

1.
Which of the following is not a potential source of comparative advantage for China in the manufacturing sector?
Select one:
a. A large domestic market that can lead to scale economies
b. Abundant low wage, low skill workers
c. Coastal areas with good logistics for international trade
d. Abundant credit from China's government sector to set up manufacturing operations
3.
China's economic reforms have focused on
Select one:
a. reducing persistent inflation and current account deficits.
b. reducing exchange rate instability.
c. transitioning from socialism and toward private ownership.
d. privatizing state-owned enterprises and increasing efficiency.
4.
EU deepening refers to
Select one:
a. adding additional countries into the single currency area.
b. legislation that restricts the sovereignty of individual countries.
c. extending the boundaries of the EU to include new members.
d. activities that cause increased levels of integration in the national economies.

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