Gains from trade are the:
A. increase in welfare in both countries that results from specialization and trade.
B. transfer of surplus by the receiving country that results from trade.
C. deadweight loss by the losing country that results from trade.
D. increased skills and human capital that results from specialization and trade.
A. increase in welfare in both countries that results from specialization and trade.
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If the value of marginal product of the last worker hired is $24 and the wage rate is $25, then
A) more workers should be hired. B) the worker should be fired. C) the firm has hired the profit maximizing number of workers. D) the firm is earning $1 of profit from this worker.
Which of the following antitrust laws forbade firms to engage in price discrimination if the effect would lessen competition or create a monopoly?
A) the Cellar-Kefauver Act B) the Clayton Act C) the Robinson-Patman Act D) the Sherman Act
For the two industries with market shares listed below, which of the following would be true? Table 14-1 ? Firm 1 Firm 2 Firm 3 Firm 4 Firm 5 Firm 6 Industry A 50% 10% 10% 10% 10% 10% Industry B 20% 20% 20% 20% 10% 10%
A. The concentration ratio would be the same for both industries but the HHI would be higher for Industry A. B. The concentration ratio would be the same for both industries but the HHI would be higher for Industry B. C. The HHI would be the same for both industries but the concentration ratio would be higher for Industry B. D. Both the concentration ratio and the HHI would be the same for both industries.
In a repeated? game, deterring entry
A) is not possible.
B) is not a rational strategy if money is lost fighting the first potential entrant.
C) may require losing money fighting the first potential entrant.
D) cannot form a subgame perfect Nash equilibrium.