If country X can produce a unit of good 1 at a lower opportunity cost than can country Y, it is correct to state that country X
A) has a comparative advantage in producing good 1.
B) has an absolute advantage in producing good 1.
C) will import good 1 from country Y.
D) will not produce good 1.
A
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In the presence of negative pollution externalities, it is more efficient to have Cournot competitors than Bertrand competitors.
Answer the following statement true (T) or false (F)
When government revenues exceed government outlays in a particular year, this is called
A) a budget surplus. B) a budget deficit. C) the national debt. D) fiscal policy.
The successor organization to GATT that handles trade disputes among its member nations is the
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.
Which one of these conditions is not a part of asymmetric information?
A. parties are engaged in and economic transaction. B. information is not uniform. C. the government usually intercedes to fix the problem. D. all of these answer options are correct.