If Canada can produce 500 TV sets at the cost of 10 cars, while Mexico can produce 1,000 TV sets at the cost of 8 cars, we know the following:

a. Canada has a comparative advantage in TV production.
b. Mexico has the absolute advantage in TV production.
c. The two countries' joint output equals 1,500 TV sets and 18 cars without trade, but it will be higher after proper specialization and trade.
d. Canada has a comparative advantage in car production.
e. Canada produces more cars than Mexico does.


D

Economics

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According to the open-economy macroeconomic model, if the United States moved from a government budget deficit to a government budget surplus, U.S. real interest rates would increase and the real exchange rate of the U.S. dollar would appreciate

a. True b. False Indicate whether the statement is true or false

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A good that has social costs that are less than private costs has a quantity that is

A. too high. B. equal to zero. C. just right. D. too low.

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Which of the following best illustrates the fallacy of composition?

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Economics

All of the following will decrease the demand for labor by firms in an industry except

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Economics