If country A exports good X to country B and country B exports good Y to country A, it is most likely that
A) A has an absolute advantage in the production of good X.
B) B has a comparative advantage in the production of good Y.
C) the opportunity cost of domestic production of good Y for country A is lowered with trade.
D) B is producing less of good Y than in the no-trade case.
B
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At the quantity of 1000 tacos, the marginal social benefit of a taco is $.50 and the marginal social cost is $.60. To produce the efficient quantity of tacos
A) more tacos should be produced. B) fewer tacos should be produced C) there should be no change in the amount of tacos produced. D) More information on production costs is needed to determine the efficient level of tacos.
The table above shows sales of the firms in the chocolate industry. The four-firm concentration ratio in the industry is
A) 52 percent. B) 65 percent. C) 72 percent. D) 80 percent.
Refer to Figure 13-13. If the diagram represents a typical firm in the market, what is likely to happen to its average cost of production in the long run?
A) It will probably fall since the firm must be cost efficient to remain competitive. B) It will probably rise since the firm will be producing less than its current amount. C) It will probably rise since its long-run demand is likely to be higher. D) It will probably fall since the firm will be selling less than its current amount.
In a business cycle, a peak marks the end of an expansion and the beginning of a recession
a. True b. False Indicate whether the statement is true or false