When there is no comparative advantage between countries
A. the benefits resulting from trade are increased.
B. there are no gains from specialization and trade.
C. there must be an absolute advantage.
D. each should try and specialize in the production of a particular commodity.
B. there are no gains from specialization and trade.
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Refer to Table 13-5. What are the firm's profit-maximizing or loss-minimizing price and quantity?
A) price = $12; quantity = 4. B) price = $10; quantity = 5. C) The firm should shut down temporarily. D) This cannot be determined from the information given.
A technological improvement in producing good A would be a shift in the:
a. supply curve for A to the right. b. supply curve for A to the left. c. demand curve for A to the right. d. demand curve for A to the left.
The social insurance provided by the government is insurance against
a. floods, hurricanes, and other natural disasters b. loss of funds in private pension programs c. sizable income losses when people retire or when they become disabled or unemployed d. loss of value of stocks and bonds when corporations go bankrupt e. loss of funds in private pension plans, retirement annuities, and unemployment
The government of Blenova considers two policies. Policy A would shift AD right by 500 units while policy B would shift AD right by 300 units. According to the short-run Phillips curve, policy A will lead
a. to a lower unemployment rate and a lower inflation rate than policy B. b. to a lower unemployment rate and a higher inflation rate than policy B. c. to a higher unemployment rate and lower inflation rate than policy B. d. to a higher unemployment rate and higher inflation rate than policy B.