According to comparative advantage, trade between two countries
A. guarantees that consumption levels will be equal in the two countries.
B. allows each of the trading countries to allocate its resources most efficiently.
C. maximizes the amount of inputs that are used in the production of all products.
D. will benefit all the industries in each of the countries.
Answer: B
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What happens to the demand for a good if a complement's price increases?
A) The demand increases and the demand curve shifts rightward. B) The demand decreases and the demand curve shifts rightward. C) The demand increases and the demand curve shifts leftward. D) The demand decreases and the demand curve shifts leftward. E) There is no impact on demand for the good and the demand curve does not shift.
The price charged by a monopolistic competitor for each unit of a good is $7. If it produces 5,000 units of the good at a total cost of $25,000, what is his profit?
A) $8,000 B) $10,000 C) $7,000 D) $35,000
A demand elasticity coefficient is a measure of the sensitivity of quantity demanded to a change in one of the determinants of demand
Indicate whether the statement is true or false
Advocates of a tax on soda and other sugary drinks argue that such a tax
a. may encourage better nutrition. b. will protect our future selves from the long run negative effects of consuming these drinks. c. is needed because people tend to behave inconsistently over time. d. All of the above are correct.