The economic argument supporting free trade is based on the principle of
a. absolute advantage.
b. comparative advantage.
c. protection.
d. tariffs and quotas.
Answer: b. comparative advantage.
You might also like to view...
In recent years, the cost of producing organic produce in the United States has decreased largely due technological advancement. At the same time, more and more Americans prefer organic produce over conventional produce
Which of the following best explains the effect of these events in the organic produce market? A) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity. B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. C) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. D) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.
If a bank grants you a mortgage, the mortgage is
A) an asset to you as well as an asset to the bank. B) an asset to you, but a liability to the bank. C) a liability to you, but an asset to the bank. D) a liability to you as well as a liability to the bank.
The demand curve facing a firm
a. indicates the quantity of output that customers will purchase from that firm, at various prices b. shows the minimum cost of producing any level of output c. is drawn assuming that the firm is operating in the short run d. indicates how much output a profit-maximizing firm will produce, at various prices e. is downward sloping because consumers have less money to spend, the more output they purchase
When demand falls, the price charged by a monopoly under an average-cost pricing policy will fall.
Answer the following statement true (T) or false (F)