The reasons that nations trade include the fact that
a. resources are distributed unequally across countries, and persons must trade to get more of what they want by specialization and trade.
b. differences in climate lead to unequal abilities to grow certain types of food.
c. no one country produces all of what citizens within the country want.
d. all of the above
Question 2
Evidence suggests that the marginal social cost of pollution reduction:
a. increases as pollution reduction increases.
b. remains constant as pollution reduction increases.
c. decreases as pollution reduction increases.
d. equals zero since it is beneficial to reduce pollution.
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