According to the international trade theory, a country should import goods in which it has an absolute advantage
a. True
b. False
Indicate whether the statement is true or false
False
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In 2005, the European Union began a program to
A) reduce greenhouse gas emissions by 10 percent within 5 years. B) eliminate greenhouse gas emissions by 50 percent within 15 years. C) subsidize firms that pollute more than a given limit. D) allow the trading of carbon-dioxide permits among firms.
Which tool do economists use to determine the effect of an economic event on equilibrium price and quantity?
a. equilibrium price b. the four-step process c. demand schedule d. supply schedule
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y2. C. P3 and Y1. D. P2 and Y3.
Explain the weak and the strong forms of the factor-price equalization theorem and discuss their real-world relevance.
What will be an ideal response?