Japan and China can both produce guns and rice. The country with the lowest opportunity cost of guns (in terms of rice) will
a. import guns
b. have a comparative advantage in guns.
c. have an absolute advantage in guns.
d. have a comparative advantage in rice.
b
Economics
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According to Linder, the gains from international trade come about because consumers are exposed to
A) a greater variety of goods. B) increasing returns to scale. C) imperfect competition. D) None of the above.
Economics
A specific tax on sellers will
A) shift the demand curve to the right. B) shift the demand curve to the left. C) shift the supply curve to the right. D) shift the supply curve to the left.
Economics