Assume, for Canada, that the domestic price of steel without international trade is higher than the world price of steel. This suggests that with trade,
a. Canada has a comparative advantage in the production of steel over other countries and Canada will import steel.
b. Canada has a comparative advantage in the production of steel over other countries and Canada will export steel.
c. other countries have a comparative advantage over Canada in the production of steel and Canada will import steel.
d. other countries have a comparative advantage over Canada in the production of steel and Canada will export steel.
C
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In the above figure, what could cause the shift of aggregate demand fromAD1 to AD2?
A) depletion of raw materials B) an increase in international trade barriers C) a decrease in consumer confidence D) an increase in input prices
During the 1980s both the relative price and the purchases of BMWs increased dramatically. In the economic way of thinking,
A) the supply curve of BMWs shifted to the right. B) the demand curve for BMWs shifted to the right. C) the supply curve of BMWs shifted to the left. D) the demand curve for BMWs shifted to the left.
Refer to Figure 2-2. The linear production possibilities frontier in the figure indicates that
A) it is progressively more expensive to produce orchids. B) the tradeoff between roses and orchids is constant. C) Vidalia has a comparative disadvantage in the production of roses. D) Vidalia has a comparative advantage in the production of orchids.
A monopoly may arise due to:
A. a patent. B. network externalities. C. large economies of scale. D. All of these