If labor in Mexico is less productive than labor in the United States in all areas of production,
a. then neither nation can benefit from trade.
b. then Mexico can benefit from trade but the United States cannot.
c. then the United States will have a comparative advantage relative to Mexico in the production of all goods.
d. then both Mexico and the United States still can benefit from trade.
d
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Which condition(s) must exist for the Coase theorem to hold? I. Property rights must exist. II. Transactions costs must be measurable. III. A small number of parties must be involved
A) I and II only B) I and III only C) II and III only D) I, II and III
If productive efficiency characterizes a market
A) the marginal cost of production is minimized. B) the output is being produced at the lowest possible cost. C) firms use the best technology available to produce the good. D) firms produce the goods that consumers desire most.
For private consumption goods, the optimal number of users is determined by the unanimity rule
a. True b. False
Private goods are not excludable.
Answer the following statement true (T) or false (F)