With regard to international trade,
A. The production possibilities exceed the consumption possibilities.
B. Some countries do not have a comparative advantage in producing anything.
C. The market mechanism determines the terms of trade.
D. Rich countries benefit at the expense of poor countries.
Answer: C
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Refer to Figure 19-6. Which of the following would cause the change depicted in the figure above?
A) Dumping accusations result in the United States placing tariffs on produce imported from Mexico. B) An increase in investment in infrastructure causes U.S. productivity to rise relative to Mexican productivity. C) A declining preference for Kentucky bourbon causes Mexican consumers to decrease their preferences for U.S.-produced alcohol relative to Mexican-produced alcohol. D) A contractionary monetary policy causes a decrease in the price level of U.S. goods relative to Mexican goods.
Refer to Table 9-1. Select the statement that accurately interprets the data in the table
A) Sandy has a comparative advantage in dog grooming. B) Sandy has a comparative advantage in dog bathing. C) Linda has a comparative advantage in dog grooming and dog bathing. D) Linda has a comparative advantage in dog grooming.
Figure 10.2 shows a monopolist's demand curve. The marginal revenue from selling the third unit is:
A. $6. B. $8. C. $10. D. $44.
If U.S. consumers increase their demand for foreign products and foreign travel, the U.S. dollar would tend to depreciate as more dollars are supplied to foreign exchange markets
Indicate whether the statement is true or false