If the residents of a country specialize in a good in which they have a comparative advantage and trade with residents in another nation, the residents in the first country
A) can consume more than they could without trade.
B) will produce less than they could without trade.
C) will have a lower standard of living.
D) will be exploited by the second nation.
Answer: A
Economics
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Inventions like gunpowder and the wheelbarrow were created by the Chinese hundreds of years ago. The fact that such items were not put to productive use was caused primarily by a lack of ____.
A. available financial capital B. incentives for entrepreneurship C. an adequate price system D. ingenuity
Economics
Which assumption is part of the model of monopolistic competition?
A. There is no collusion among firms. B. There are few buyers and sellers. C. There are significant barriers to entry into the market. D. Firms make identical products.
Economics