If the domestic producers of a good benefit from free trade, it suggests that the country:
A. is a net importer of that good.
B. does not have a comparative advantage in that good.
C. does not have an absolute advantage in that good.
D. is a net exporter of that good.
Answer: D
You might also like to view...
Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. If the market price is 2 cents per page, what is Fast Copy's profit maximizing level of output?
A) 16 pages per hour B) 32 pages per hour C) 48 pages per hour D) 64 pages per hour
In general, demand curves for luxuries tend to be price elastic
a. True b. False Indicate whether the statement is true or false
A production function for which proportional changes in all inputs leads to a more-than-proportional change in output is said to exhibit
A. constant returns to scale. B. diminishing returns. C. decreasing returns to scale. D. increasing returns to scale.
All other things equal, the real surplus:
A. is not affected by inflation. B. rises as inflation increases. C. falls as inflation increases. D. may rise or fall as inflation increases depending on the level of debt.