Suppose that Brazil has a comparative advantage in coffee and Mexico has a comparative advantage in tomatoes. Which of the following groups would be worse off if these countries specialize and trade?
A. All groups are better off when specialization and trade take place.
B. Mexican tomato producers.
C. Brazilian coffee producers.
D. Mexican coffee producers.
Answer: D
You might also like to view...
Because pollution reduces economic welfare, on this count real GDP as measured
A) decreases as pollution increases. B) increases to take into account the expenditures that will be made in the future to clean up the pollution. C) overstates economic welfare. D) understates economic welfare.
One reason given for the U.S. productivity slowdown in the period from 1973-1995 was
a. declining energy prices. b. increasing energy prices. c. increasing investment spending. d. increasing government spending.
In the following production function, Y = f(K, NA), a 20% increase in A will cause which of the following variables to increase by 20%?
A) labor B) effective labor C) output D) output per worker E) none of the above
Sellers gain a net benefit by producing units at a cost ______.
a. equal to the market price b. lower than the market price c. somewhat higher than the market price d. double the market price