Which of the following is TRUE about comparative advantage?
A) Comparative advantage explains trade among nations, but not within nations.
B) Comparative advantage explains trade within nations, but not among nations.
C) Comparative advantage explains trade within nations and among nations.
D) Comparative advantage has nothing to do with trade among nations; it only is concerned with specialization within a firm.
Answer: C
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Dynamic tax analysis is based on the recognition that as tax rates are increased
A) tax revenue collections will eventually decline. B) tax revenue collections will continually increase. C) tax revenue collections will change at the same rate as the tax rates. D) tax revenue collections will increase at a faster rate than the tax rate change.
NAFTA is an example of a multilateral approach to achieving free trade
a. True b. False Indicate whether the statement is true or false