We know that in antiquity, China exported silk because no one in any other country knew how to produce this product. From this information we know that
A) China had a comparative advantage in silk.
B) China had an absolute advantage, but not a comparative advantage in silk.
C) no comparative advantage could exist because the technology was not diffused.
D) China exported silk for political reasons even though it had no comparative advantage.
E) China was unable to profit by exporting silk because it was unknown in the rest of the world.
A
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Under perfect competition, the market quantity is 
Figure 42.2
A. Q1. B. Q2. C. Qa. D. Qb.
A key reason that Congress established the Fed to act as a lender of last resort was to prevent ________, the process by which a run on one bank spreads to other banks, resulting in a bank panic
A) contagion B) asset inflation C) moral hazard D) bailouts
In the case of public goods, _____
a. the free rider problem does not arise b. one person's consumption of the good reduces the consumption of the good by others c. individuals can be easily excluded from consuming the good once it is provided d. the quantity produced by a private market would be too large from society's viewpoint e. the principle of mutual excludability and principle of rivalry do not apply
An import ban on shrimp increases the price of shrimp, decreases the quantity of shrimp, and therefore domestic producers will gain at the expense of domestic consumers.
Answer the following statement true (T) or false (F)