Refer to Table 16.1. Which of the following statements is TRUE?
A) Guatemala has an absolute advantage in producing tomatoes.
B) Guatemala has an absolute advantage in producing beer.
C) Guatemala has a comparative advantage in producing beer.
D) Guatemala has a comparative advantage in producing tomatoes.
E) all of the above
C
Economics
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The Riegel-Neal Act of 1994 made reciprocity pacts
A) legal. B) illegal. C) irrelevant. D) temporary.
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The prisoner's dilemma provides an explanation for
a. the price wars that sometimes occur in oligopolies b. the ability of firms in an oligopoly to extract the entire consumer surplus c. the collusive behavior that sometimes occurs in an oligopoly d. the failure of firms in non-competitive industries to maximize profits e. an irrational behavior that occurs in competitive markets
Economics