A country can gain by importing a good that it can make itself if
A. this enables the country to make another good in which it is extremely efficient.
B. it has an absolute disadvantage in the good.
C. this permits the country to establish comparative advantage in the good.
D. All of the above are correct.
Answer: A
You might also like to view...
The value of cross price elasticity of demand between goods X and Y is 2.00?, while the cross price elasticity of demand between goods X and Z is negative 2.00. Which of the following are? true?
A. X and Y are complements and X and Z are substitutes. B. X and Y and X and Z are substitutes. C. X and Y are substitutes and X and Z are complements. D. X and Y and X and Z are complements. E. None of the above.
Table 6.4: Population and Employment in Nationland?199920002001Working Age Population100110125Employed657080Unemployed51020Discouraged Workers235*all numbers are in millionsIf discouraged workers were included in the labor force, what would the unemployment rate be for 1999?
A. 10.8 percent. B. 2.8 percent. C. 9.7 percent. D. 3.0 percent.
The economy is in an expansion and the housing market is growing. As a result of this, a home builder doubles his sales force. This would be best described as an example of a reduction in
A. structural unemployment. B. frictional unemployment. C. natural unemployment. D. cyclical unemployment.
What are externalities and why is Ronald Coase an important figure in economics?
What will be an ideal response?