A nation benefits from international trade if it
a. exports more than it imports.
b. imports more than it exports.
c. imports goods for which it is a low opportunity cost producer.
d. exports goods for which it is a low opportunity cost producer.
D
You might also like to view...
Pollution permit policies achieve an ________ outcome because ________.
A. efficient; firms that have the highest cost of reducing pollution will have the greatest incentive to purchase permits. B. efficient; firms that have the lowest cost of reducing pollution will be able to pay more for each permit. C. inefficient; wealthier firms can afford to purchase more permits. D. inefficient; the supply of permits is set by the government, and so is perfectly inelastic.
The quality of a product
A) is usually unknown to the seller and the buyer. B) leads to adverse selection. C) creates noise in a market. D) is a hidden characteristic.
Double markup problems arise when
a. upstream firms have no market power b. downstream firms have market power c. upstream and downstream products are unrelated in demand d. upstream and downstream firm's pricing decisions tend to increase the demand for the other product
Which of the following would be an advantage of a sole proprietorship?
a. ability to raise money by issuing stock b. the sharing of risk with other investors c. limited liability d. unlimited liability e. one person can make all decisions