If there are big gains to be had from specialization and trade, countries generally don’t produce one good because:
A. national economies often are perfectly free markets.
B. there is perfectly free trade between national economies.
C. specialization is generally limited by trade agreements.
D. All of these are true.
C. specialization is generally limited by trade agreements.
Economics
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The loss associated with the fact that at the profit-maximizing quantity consumers value the goods more than it cost to produce them is called
A) deadweight loss. B) comparative loss. C) Lerner Loss. D) Consumer Value Loss.
Economics
Refer to the diagram. Demand is relatively inelastic:
A. at price P 3 .
B. at any price below P 2 .
C. in the P 2 P 4 price range.
D. in the P 2 P 3 price range.
Economics