In order to fix 1 car tire, jerry fixed 3 bicycle tires. In order to fix 1 car tire, berry fixes 5 bike tires, who has the comparative advantage
What will be an ideal response?
Jerry has the comparative advantage over Berry
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Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. Using the concept of absolute advantage, which of the following statements is true? The United States:
A. has the absolute advantage in the production of both gloves and radishes. B. does not have the absolute advantage in the production of either gloves or radishes. C. has the absolute advantage in the production of gloves, but not radishes. D. has the absolute advantage in the production of radishes, but not gloves.
An externality is the
A. secondary effect on an action B. unintended consequence of an action C. effect of an action on people or things that were not involved in the action D. unknown consequence of an action on people or things who were primary parties in the action
Suppose that Spain has a comparative advantage in hats and Portugal has a comparative advantage in doormats. Under a system of free trade, each country specializes and then trades with the other. If the price starts at four hats per doormat, and then increases to five hats per doormat, then:
A. people in Portugal will not want to buy as many hats. B. Spain no longer has a comparative advantage in hats. C. some of the gains from trade shift to Spain. D. some of the gains from trade shift to Portugal.
In a small country, the net national cost of tariff protection is equal to the reduction in consumer surplus minus
A) the increase in government revenue and the increase in producer surplus. B) the increase in government revenue. C) the increase in producer surplus. D) the efficiency loss and the consumption side loss.