Comparative advantage indicates that:
a. specialization and exchange will permit trading partners to maximize their joint consumption.
b. a nation can gain from trade only if it is not at an absolute disadvantage in producing all goods.
c. a nation can gain from trade only when its trading partners are not low-wage countries.
d. countries should export products for which they are high-opportunity cost producers.
a
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The historical record for the United States over the last 100 years shows
A) mostly positive economic growth, though the Great Depression caused actual GDP to dip well below potential GDP. B) economic growth for about half the years and economic decline for the other half. C) growth until 1970 and then a period of constant per person real GDP. D) continuous economic growth for each year, although at different rates, throughout the entire century.
The North American Free Trade Agreement affects trade between:
A. the United States, Cuba, and Brazil. B. the United States, Canada, and Mexico. C. the United States, Puerto Rico, and Cuba. D. Brazil, Bolivia, Peru, and Columbia.
Which of the following is true about a differentiated-product Bertrand duopoly?
A. Firm 1 and firm 2's prices will equal marginal cost. B. Firm 1 and firm 2's prices will exceed marginal cost. C. Firms in a differentiated-product Bertrand duopoly cannot earn positive economic profits in the long run. D. Firm 1's price will always be above marginal cost, while firm 2's price will be equal to marginal cost.
The government weighs the potential cost savings resulting from a merger against the potential anticompetitive problems to determine whether or not to allow a merger to take place.
Answer the following statement true (T) or false (F)