Given the information in the table above, if the world equilibrium price of widgets were 40 cloths, then
A) both countries could benefit from trade with each other.
B) neither country could benefit from trade with each other.
C) each country will want to export the good in which it enjoys comparative advantage.
D) neither country will want to export the good in which it enjoys comparative advantage.
E) both countries will want to specialize in cloth.
A
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a. True b. False Indicate whether the statement is true or false
If soybean farmers know that the demand for soybeans is inelastic, in order to increase their total revenues they should
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Price leadership works only if there is a single, dominant firm in the oligopoly.
Answer the following statement true (T) or false (F)
Refer to the above figure. Suppose that the economy initially is operating along AD1. If the government seeks to close the recessionary gap by raising government spending without any change in taxation, which moves the aggregate demand curve from AD1 to AD2, then to AD3. Which of the following scenarios is TRUE?
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