Which of the following is true?
a. Voluntary trades give both parties more in value than what they give up
b. Without the ability to trade, people would not tend to specialize as much in those areas where they had a comparative advantage.
c. People can gain by specializing in the production of the good in which they have a comparative advantage.
d. All of the above are true.
d
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The law of comparative advantage implies that a nation, individual, or region should trade for those economic goods for which it
What will be an ideal response?
If the United States is a net importer of bananas, free trade will benefit the
A. rich citizens of the Unite States. B. poor citizens of the United States. C. domestic banana consumers. D. domestic banana producers.
The wearing out of plants and equipment is known as
A. Maintenance Costs. B. Depreciation. C. Chain-weighted adjustment. D. Inflation.
On the "supply side" of a market, producers indicate to consumers what they are willing to sell, in what quantity and at what price.
Answer the following statement true (T) or false (F)