International trade can be mutually advantageous because it
a. encourages the adoption of sound institutions and policies.
b. reduces the competitiveness of domestic industries and, thereby, makes it easier for the domestic producers to raise their prices.
c. permits the trading partners to take advantage of reductions in per-unit costs in industries where economies of scale are important.
d. does all of the above.
e. does both a and c.
E
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The United States has a comparative advantage in producing airplanes if
A) it can produce them at a lower opportunity cost than can other nations. B) it can produce them at a lower dollar cost than can other nations. C) it can produce a larger quantity than can other nations. D) it has a larger quantity of skilled workers than do other nations.
Changing the ownership of the ocean from common property to private property would
A) ensure that this resource would be allocated in a more efficient manner. B) ensure that this resource would be allocated in a less efficient manner than under common property rights. C) not be economically desirable. D) result in no appreciable change in efficiency of utilization of this resource.