Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then
A) Chile will produce more computers after trade begins with Brazil.
B) Brazil will produce more timber after trade begins with Chile.
C) Chile will produce more timber after trade begins with Brazil.
D) Brazil will completely specialize in computers once trade begins with Chile.
C
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The World Trade Organization (WTO) promotes foreign trade and investment, or globalization. In recent years opposition to globalization has led to violent protests at meetings of the WTO
All of the following are reasons for these anti-globalization protests except A) protesters believe that free trade destroys the distinctive cultures of many countries. B) protestors believe the WTO favors the interests of high-income countries at the expense of lower-income countries. C) protesters object to the loss of intellectual property (such as software programs and movies) that results from foreign trade and investment. D) protesters believe that tariffs are needed to protect domestic firms from foreign competition.
Refer to Table 13-3. What is the amount of the firm's loss at its optimal output level?
A) $0 B) $41 C) $45 D) $50