Assume that in Canada the opportunity cost of producing one television set is two bushels of wheat. Assume that in the United States the opportunity cost of producing one bushel of wheat is two television sets. If these two countries specialize according to comparative advantage and then trade with each other:
A. the United States will import both televisions and wheat.
B. Canada will import wheat and export televisions.
C. Canada will import both televisions and wheat.
D. the United States will import wheat and export televisions.
Answer: D
You might also like to view...
The marginal cost of additional health care when there are copayments is zero
a. True b. False
Which of the following would tend to narrow the gap between the private return to innovation and the social return to innovation?
A. An increase in scientific productivity B. A patent system C. More spending on R&D D. Competitive markets
An industry consists of five firms with annual sales of $130, $50, $40, $10 and $60. What is the industry's HHI?
A. 10,000 B. 5,654 C. 2,937 D. There is not sufficient information to compute the industry HHI.
Altruism describes:
A. a motive for action in which a person's utility is increased when another's utility increases. B. a motive for action in which a person's utility becomes negative when another's utility increases. C. a motive for action in which a person's utility is decreased when another's utility increases. D. a motive for action in which a person's utility is unaffected when another's utility increases.