A country benefits from trade if it is able to obtain a good from a foreign country:
a. that has a very low domestic demand.
b. the production of which requires a steady supply of unskilled labor.
c. by giving up less of other goods than it would have to give up to obtain the good at home.
d. by giving up more of other goods than it would have to give up to obtain the good at home.
e. that has a substantial number of substitutes in the domestic market.
c
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Which of the following results in a positive externality?
A) Visiting a beach B) Recycling of waste C) Buying a room heater D) Following a healthy lifestyle
The market demand curve for a perfectly competitive industry is
a. perfectly horizontal b. perfectly vertical c. upward sloping d. downward sloping e. nonexistent in perfect competition
Consider an auctioneer who is selling an item through an auction. It is known that the 10 risk-neutral bidders have independent private values that are uniformly distributed between $1,000 and $2,000. Based on this information, we can conclude that the expected revenue in this auction will be:
A. $2,000. B. $1,000. C. $1,900. D. There is insufficient information to determine the expected revenue.
Government purchases in national income accounts would include expenditures for payments of:
A. public assistance for military veterans. B. salaries for current U.S. military officers. C. Social Security checks to retirees. D. public assistance for welfare recipients.