Countries import goods in which they have:
a. an absolute advantage.
b. a comparative advantage.
c. a reputation for good product quality.
d. a comparative disadvantage.
e. a surplus domestic production.
d
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Identify the two losses of efficiency associated with the imposition of a tariff
What will be an ideal response?
Which of the following is a statement with positive economic analysis?
A) Lower wages increase employment and reduce the unemployment rate. B) Slower money growth reduces inflation. C) A reduction in the size of the budget deficit will reduce interest rates. D) all of the above
Trade between two nations can benefit both if each specializes in the good that it can produce at a lower opportunity cost.
a. true b. false
State and local governments subsidize college students with grants and low-interest loans. The loans and subsidies are examples of
A) positive externalities. B) Coase subsidies. C) Pigovian subsidies. D) emission allowances.