A rich nation will trade with a poor nation because the
A) poor nation has the absolute advantage in producing all products.
B) poor nation has the comparative advantage in producing a product.
C) rich nation has the comparative advantage in producing all products.
D) rich nation has the absolute advantage in producing all products.
B
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A monopolistically competitive industry that earns economic profits in the short run will
A) experience a rise in demand in the long run. B) experience the entry of new rival firms into the industry in the long run. C) experience the exit of existing firms out of the industry in the long run. D) continue to earn economic profits in the long run.
Which of the following is an example of an in-kind transfer?
a. welfare payments b. most Social Security benefits c. unemployment compensation payments d. food stamps e. charitable contributions