In a situation of free trade,
A. countries with comparative advantage will export more than countries with comparative disadvantage import.
B. the total quantity of an item exported will be greater than the total quantity imported.
C. importing countries will always produce some good, so that total quantity imported is less than total quantity exported.
D. the total quantity of an item exported will equal the total quantity imported.
Answer: D
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Which of the following would NOT be counted as employed?
A) an underemployed person B) an employee working overtime every day C) a part-time worker D) a discouraged worker
The basis for trade is comparative advantage, not absolute advantage
Indicate whether the statement is true or false
A factory is an example of:
a. capital. b. scarcity. c. an enterprise. d. land resources. e. output.
The people of Andres, a small fishing village in a country, are facing extremely difficult times as their source of livelihood is threatened. Unregulated by the government, the coastline was subject to overfishing for a long time, adversely affecting the stock of fish. The variety of fish has declined and it takes much longer to haul in a decent catch these days. People in Andres are worried that
they may have to migrate to other areas or look for alternative sources to earn a living. Which of the following is most similar to this scenario? a. Oil producers hoard the extracted oil to increase prices. b. Public highways get congested because they are nonexclusive. c. Poaching of the Javan rhino for its priced horns in unprotected forest belts of Indonesia has led to its near extinction. d. People in Jinbong village now have to pay to be able to fish in the local pond. e. A farmer shifts from potato to corn cultivation because the latter offers more profits.