The United States Produces Both Automobiles and Computers More Efficiently

question 114

Multiple Choice

The United States produces both automobiles and computers more efficiently than Mexico.Nevertheless, it is possible that both nations would benefit from trade in these items.The reason for this is

• A)the law of comparative advantage.
• B)the inflation-unemployment trade-off.
• C)externalities.
• D)the cost disease of personal services.
• E)attempts to repeal the law of supply and demand.

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Definitions:

Civil Law Systems

Legal systems derived from Roman law, prevalent in Europe and Latin America, focusing on codified laws rather than judicial decisions.

Legislative Enactments

Laws or statutes formally passed or approved by a legislative body.

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An agreement under international law entered into by sovereign states and international organizations.

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The supreme law of the United States, outlining the national frame of government and fundamental principles and rights.