Is it possible for a country to have an absolute disadvantage and a comparative advantage in the production of a good?
a. No, these are incompatible on theoretical grounds.
b. No, theory prevents it, but some economists claim it could occur.
c. Yes, this situation can occur.
d. Yes, in theory, although not in reality.
c
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In the "non-market-clearing model" the level of final goods sales and unemployment during a recession are
A) the result of interactions between supply and demand. B) higher than would be the case in a market clearing model. C) caused by the rapid adjustment of prices and wages. D) the result of wage and price rigidities.
An efficient customer sorting rule is one in which
a. customers with high willingness to pay secure the discounted goods b. customers are rationed randomly between the discounted and full price goods c. no customer purchase below her willingness to pay d. customers with the lowest willingness to pay secure the discount goods e. brand loyalty allows the incumbent to retain its regular customers