If a country begins to import a good,
a. it has a comparative advantage in producing that good
b. it has a comparative advantage in consuming that good
c. domestic consumers are made better off
d. domestic producers are made better off
e. both domestic consumers and domestic producers are harmed
C
You might also like to view...
Privately-owned firms that accept deposits from individuals and businesses and use those deposits to make loans are called:
A. mortgage banks. B. brokerage firms. C. investment banks. D. commercial banks.
Which of the following could a corporation use to raise its initial operating capital?
a. Government loans with low interest rates b. Mortgages from banks c. Public offering of stock d. Loans from the informal market at a high rate of interest
Which of the following describes a differentiated product?
a. A product that consumers perceive as distinctive in some way b. A product that lacks many competitors in a market or industry c. A product that is produced and sold in a niche market d. A product that is produced by a natural monopolist
Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches. B. Dan has the comparative and absolute advantage in sandwiches. C. Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies. D. Dan has the comparative and absolute advantage in smoothies.