In the two-country, two-commodity model, both countries can gain from trade as long as their relative advantages and disadvantages in producing different goods are different.
Answer the following statement true (T) or false (F)
True
You might also like to view...
As China's auto production capability has evolved, it is unclear whether protection was beneficial or harmful. Why?
a. Accounting data must be translated from Chinese to English, and that is a difficult task. b. After 30 years of infant industry protection, the tariff on auto imports is still significant (a 25% tariff). c. China will probably never achieve exports, so whether any gains were made is unclear. d. Chinese consumers are exerting more market power, and they are opposed to any kind of import protection.
The classical economists believed in all of the following EXCEPT
A. wages and prices are flexible downward. B. insufficient aggregate demand could keep an economy in a depression for an extended period of time. C. recessions were temporary because the economy is self-correcting. D. laissez faire was the best policy a government could pursue.
Single-owner proprietorships often unintentionally exaggerate their profits because they
A. look at after-tax instead of pre-tax costs. B. neglect to consider the opportunity cost of the owner's labor. C. pay their bills late and therefore incur large interest charges. D. forget their explicit losses.
Which of the following is true about the chairman of the Federal Reserve Board of Governors?
A. The chairman is elected by the Fed regional bank presidents. B. The chairman serves a 21-year term. C. A new chairman is elected as soon as a new U.S. president takes office. D. The chairman can be reappointed for more than one term.