Answered: Naked Economics: Undressing the Dismal…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Naked Economics: Undressing the Dismal Science Book by Charles Wheelan

Which of the below statements does NOT reflect the ideas expressed by the author Charles Wheelan in the chapter titled, "Trade and Globalization," in the book, Naked Economics: Undressing the Dismal Science? In short, with which of the below statements, in one form or the other, DOES NOT match the ideas expressed by Wheelan in this chapter?

A) There are no losers in international trade and globalization. Within each economy engaging in trade all workers in all economies gain from trade.

B) Trade lowers the cost of goods for consmers, which is the same as raising their incomes.

C) Trade is based on voluntary exchange.

D) The comparative advantage of workers in poor countries is cheap labor.

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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