Belarus has a comparative advantage in the production of linen, but Russia has an absolute advantage in the production of linen. If these two countries decide to trade,
a. Belarus should export linen to Russia.
b. Russia should export linen to Belarus.
c. trading linen would provide no net advantage to either country.
d. Without additional information about opportunity costs, this question cannot be answered.
a
You might also like to view...
Refer to Figure 10.2. In moving from the competitive level of output and price to the monopoly level of output and price, the monopolist is able to add to producer surplus:
A) the area BCEF. B) the area BCEF less the area GFH. C) the area BCEH. D) the area BCEH less the area GFH. E) none of the above
If the graph shown represents Taylor's budget constraint, which of the following consumption bundles could Taylor choose?
A. Taylor cannot choose to consume any of these bundles
B. Two pairs of earrings and six hairbands
C. One pair of earrings and six hairbands
D. Four pairs of earrings and eight hairbands
Which of the following best describes the effect of a negative incentive?
a. a decrease in an activity b. an increase in a behavior c. no change in activity d. an unpredictable response
If the average annual rate of economic growth is 4? percent, approximately how long will it take for the? nation's per capita real GDP to? double?
What will be an ideal response?