The following input-requirements data are for Country A, a capital-abundant country that produces nothing but bread and wine using only capital and labor as inputs. 1 Pound of Bread1 Gallon of WineCapital Input5 units20 unitsLabor Input4 units10 units Following the opening of trade, Country A would probably
A. import both goods.
B. export bread and import wine.
C. export both bread and wine.
D. export wine and import bread.
Answer: D
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a. goods belonging to two separate markets b. complementary goods c. perfect competition d. product differentiation e. barriers to entry
Markets work well for allocating ________ efficiently, but not always so well for allocating ________.
A. common resources; public goods B. public goods; common resources C. public goods; private goods D. private goods; public goods
An example of share distribution of income is how much:
A. two-parent households get relative to single-parent households. B. Black people get relative to white people. C. the top 10 percent of a population gets. D. the young get relative to the old.
Which of the following statements reflects a situation in which there are external benefits?
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