Mexico has a comparative advantage in producing corn:
A. regardless of the opportunity cost in other countries.
B. if its opportunity cost of producing corn is higher than the opportunity cost in other countries.
C. if its opportunity cost of producing corn is lower than the opportunity cost in other countries.
D. if its opportunity cost of producing corn is the same as the opportunity cost in other countries.
Answer: C
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Indicate whether the statement is true or false
A 5 percent tax is going to be applied to a $100,000 tax base. What can be said about the revenue collected assuming dynamic tax analysis?
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Why can’t the government sell surplus agricultural products it has purchased domestically?
What will be an ideal response?