Question

Which of the following is Economic theory also suggests that import levels affected by other factors?

a. Price of imports and price international goods relative to exports
b. Price of imports and exchange rate only
c. Price of imports, exchange rate, and price of international goods relative to exports
d. Price of imports, exchange rate, and price of domestic goods relative to imports

Answer 1

Answer:

Explanation:

Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. The theory of comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.