To achieve gains from trade, a country
A) needs to have an absolute advantage in the production of all goods.
B) specializes in the producing a good in which it has a lower opportunity cost.
C) must produce at a point beyond its PPF.
D) needs to have an absolute advantage in the production of at least one good.
E) should produce at the midpoint of its PPF.
B
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If the poor cannot afford proper medical treatment, an economist, for reasons of efficiency, would favor
a. giving the poor added income to spend as they see fit. b. paying doctors bonuses to treat the poor. c. paying the medical bills of the poor. d. giving the poor "medical stamps."
If a nation changes its laws to more actively enforce intellectual property rights, all of the following will most likely take place except
A) more software companies will choose to export their products to that country. B) more film makers will choose to do business in that country. C) the black market for intellectual property will become more prosperous in that country. D) foreign investment in that country will increase.