Canada and the U.S. are the world's greatest trading partners. But they wouldn't trade at all if
a. the opportunity costs for the goods they produce are the same in both countries
b. the opportunity costs are unequal for all the goods they produce
c. their production possibilities curves are unequal
d. they had a history of mutual retaliation
e. their resources were of different qualities
A
You might also like to view...
If a 1 percent increase in the price of X increases the quantity demanded of Y by 2 percent, then X and Y are
A) complements and the cross elasticity of demand equals 2. B) substitutes and the cross elasticity of demand equals 1/2. C) substitutes and the cross elasticity of demand equals 2. D) complements and the income elasticity of demand equals 2. E) normal goods and the income elasticity of demand of each equals 2.
If the current account balance is -$100 billion and the capital and financial account balance is $80 billion, then the official settlement account balance is
A) -$20 billion. B) $20 billion. C) always 0. D) impossible to determine with the information given.