When every country does what it is best at,
a. every other nation will lose because of the inability to compete.
b. all other nations can benefit because more of every commodity can be produced.
c. some nations will gain at the expense of other nations.
d. rich nations will gain at the expense of poor nations.
b
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Total revenue for skis is at a maximum when the price elasticity of demand is
A) between 0 and 1. B) 1. C) greater than 1. D) 0.
The U. S. committed itself to creating a free trade zone between the U.S., Canada and Mexico. Why might this be important? Relative to imports and exports to other nations, what is the size of these two North American trading partners trade relationship with the U.S.?
If after a change in an allocation it can be demonstrated that the value of the gains exceeds the value of the losses, then the change is said to be potentially efficient.
Answer the following statement true (T) or false (F)
In the short run
A. existing firms can exit an industry. B. all firms have costs that they must bear regardless of their output. C. new firms can enter an industry. D. existing firms do not face limits imposed by a fixed input.