When a developing country relies on import substitution,
a. it sacrifices the gains from specialization and comparative advantage
b. replaces low-cost foreign goods with high-cost domestic goods
c. domestic producers, shielded from foreign competition, usually fail to become efficient
d. other countries often retaliate with their own trade restrictions
e. All of the answers are correct
E
Economics
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There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer available to them.
A. Yes, meets all assumptions B. No, no free entry C. No, not many sellers D. No, not a homogeneous product
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When economists refer to capital, they might mean
a. money b. human skills used in production c. stocks d. bonds e. bank loans
Economics