If China has an absolute advantage over Canada in producing both rice and tires, then
a. China should produce both rice and tire and Canada should produce both rice and tires
b. there are no benefits possible to China from specialization
c. Canada should produce tires and China should produce rice
d. China should produce tires and Canada should produce rice
e. more information is needed to tell whether China or Canada should specialize
E
Economics
You might also like to view...
By changing the reserve requirement the Fed can change the level of bank reserves and the lending capacity of the banking system.
a. true b. false
Economics
A risk-neutral individual will:
A. accept only better-than-fair gambles. B. accept only gambles with an expected value of zero. C. accept only gambles with an expected value of zero or greater. D. see risk as neither good nor bad.
Economics