Which of the following looks at the demand side of the market to explain some of the observed international trade patterns?
a. The theory of consumer preferences
b. The factor abundance theory
c. The product life cycle theory
d. The Ricardian model
e. The human skills approach
Question 2
The free rider problem suggests that a producer will tend to:
a. produce more than the optimal quantity of a public good.
b. produce less than the optimal quantity of a public good.
c. produce the optimal quantity of a public good if it is funded out of tax revenue.
d. do none of the above.
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