Which of the following is TRUE about comparative advantage?
A) Comparative advantage explains trade among nations, but not within nations.
B) Comparative advantage explains trade within nations, but not among nations.
C) Comparative advantage explains trade within nations and among nations.
D) Comparative advantage has nothing to do with trade among nations; it only is concerned with specialization within a firm.
C
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The externality associated with technology spillovers
a. cannot be internalized by government. b. is a negative externality. c. can be internalized, potentially, through taxation of firms that are responsible for technology spillovers. d. can be internalized, potentially, through patent protection.
A vertical long-run aggregate-supply curve represents
a) both the classical dichotomy and monetary neutrality. b) the classical dichotomy but not monetary neutrality. c) neither the classical dichotomy nor monetary neutrality. d) monetary neutrality but not the classical dichotomy.
Using the above figure, which of the lines in the above diagram represents a proportional tax?
A. A B. B C. C D. none of them
The MC curve is
A. J.
B. K.
C. L.
D. M.