LDCs often have a comparative advantage in the production of ?
Correct answer: A. primary products
- A. primary products
- B. intermediate products
- C. manufactured products
- D. financial services
Explanation
Less-developed countries commonly have abundant land or unskilled labour but limited capital and technology, giving them a comparative advantage in primary products such as agricultural goods and raw materials. Manufactured goods and financial services generally require greater capital and skills.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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