Refer to Table 9-10
a. Which person has an absolute advantage in the production of pens? pencils?
b. Which person has a comparative advantage in the production of pens?
c. Which person has a comparative advantage in the production of pencils?
a. Farah has an absolute advantage in the production of pens and Tran has an absolute advantage in the production of pencils.
b. Farah has a comparative advantage in the production of pens.
c. Tran has a comparative advantage in the production of pencils.
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_____ prefer a quota to an import tax
a. Foreign producers b. Importers c. Consumers d. Foreign consumers
Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Diminishing marginal product sets in with the:
A. fourth worker.
B. third worker.
C. fifth worker.
D. second worker.
When two nations agree to lower their tariffs against each other, they engage in
a. a customs union b. a free trade union c. geographical specialization d. a reciprocal agreement e. a comparative advantage
A change in economic output is ________ if the value of the resulting gains exceeds the value of the resulting losses.
A. always inefficient B. irrelevant C. always efficient D. potentially efficient