Colombia has an absolute advantage in
A. coffee and a comparative advantage in hot dogs.
B. neither coffee nor hot dogs, but a comparative advantage in hot dogs.
C. neither coffee nor hot dogs, but a comparative advantage in coffee.
D. neither coffee nor hot dogs, but a comparative advantage in both hot dogs and coffee.
B. neither coffee nor hot dogs, but a comparative advantage in hot dogs.
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Which of the following is a normative question about an initiative to impose a new tax?
A.All of the above are normative considerations. B. What is the expected impact on producers and consumers? C. How much revenue is the tax expected to raise? D. Is the tax considered to be in the public interest?
Under perfect competition, the market mechanism, without any government regulation, is capable of
A. allocating resources efficiently. B. solving equity problems. C. making the average cost of labor equal to the average cost of all commodities. D. making more income available to the poor.