A country's newest ruler has decided the country will become self-sufficient and ceases trade with the rest of the world. The likely outcome of this action will be that the country's citizens will be:
A. forced to consume less than before if they possessed a comparative advantage in the production of a good.
B. better off than before if they possess an absolute advantage in the production of a good.
C. better off than before only if they have the absolute advantage in the production of most goods they consume.
D. better off than before only if they have the comparative advantage in allgoods
A. forced to consume less than before if they possessed a comparative advantage in the production of a good.
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If the unemployment rate in the economy is steady at 4 percent per year, how does the short-run Phillips curve predict that the inflation rate will be changing, if at all? What will happen if the unemployment rate now rises to 7 percent per year?
Assume there are no changes to inflation expectations. Provide an appropriate graph to support your discussion.
Unlike markup pricing, the strategy of price discrimination is totally independent of the price elasticity of demand for the good in question
Indicate whether the statement is true or false
If a person who generates a negative externality incorporates into his or her private cost-benefit calculations the effects that this externality will have on third parties, the externality has been
A. substituted. B. accommodated. C. compounded. D. internalized.
Which of the following would be considered an economic function of government?
A) providing a legal system B) promoting competition C) providing public goods D) All of the above are correct.