Which of the Following Is True About the Determinants of National

question 38

Multiple Choice

Which of the following is true about the determinants of national competitive advantage?

• A)The presence of strong competitors in a nation adversely affects national competitive advantage.
• B)The presence of demanding customers pressures firms to innovate faster and produce better products.
• C)Demand conditions describe the nation's position in factors of production, such as labor, natural resources, capital, technology, entrepreneurship, and know-how.
• D)Vigorous competitive rivalry among firms lowers national innovativeness.

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Definitions:

Mediocre Economists

Economists who may possess average skills or lack the influence of leading thinkers in their field.

Observable

A characteristic or phenomenon that can be seen, measured, or otherwise detected through empirical methods.

Self-interest

The pursuit of individual advantage or profit, often regarded as a basic economic driving force.

Adam Smith

An 18th-century Scottish economist and philosopher, often considered the father of modern economics, best known for his theory of the invisible hand guiding free markets.