The rapid growth of China's economy relative to the United States has benefitted U.S. consumers because
A) U.S. consumers can purchase more lower-priced goods made in China.
B) competition from China has made jobs harder to find in the United States.
C) goods made in China are always of higher quality than goods made in the United States.
D) the United States has comparative advantage in more goods than China does.
A
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An import tariff will have what effect on price and quanititly in the domestic market for the good?
a. increase; increase b increase; decrease c. decrease; increase d. decrease; decrease e. decrease; no change
A company finds that at the output level at which marginal cost equals marginal revenue, TC = $500, TVC = $400, and TR = $450. Your advice to the firm is
A) shut down, as TC > TR. B) reduce output to reduce the cost of production. C) increase output to reduce the per unit cost of production. D) continue to produce because loss is less than TFC.