If Norwegian workers are more productive than Albanian workers, then trade between Norway and Albania
A) will take place so long as each country has a comparative advantage in a good or service that buyers in the other country want.
B) cannot take place until Albanian workers become more productive.
C) can take place only if Albania has an absolute advantage in producing a good or service Norwegian buyers want.
D) cannot take place because Norwegian goods and services will be less expensive than Albanian goods and services.
A
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Suppose that with international trade now a possibility, two trading nations restructure their production from both having produced clothes and food to one producing clothes and the other producing food. What gains do they experience? What problems may they experience? a. Gains are higher labor productivity and greater total output. Problems may be economic inefficiency
b. Gains are economic efficiency. Problems may be trade wars. c. Gains are people in both nations having higher incomes. Problems may be that the nations cannot find an acceptable trading price between food and clothes. d. Gains are higher labor productivity and greater total output. Problems may arise from dependence on the other for vital goods. e. Gains are economic efficiency. There are no problems as long as they engage in free trade.
The most important determinant of the level of consumption is
A. credit availability. B. the level of disposable income. C. the stock of liquid assets in the hands of consumers. D. consumer expectations.
Unions can only achieve wage gains by sacrificing employment.
Answer the following statement true (T) or false (F)
A natural monopoly is
A. A monopoly that always benefits society even when it is unregulated. B. An unregulated monopoly. C. An industry in which one firm can achieve economies of scale over the entire range of market supply. D. An industry that is dominated by a single firm.