Author Question: Suppose rice can be produced in country X at a lower cost than in country Y, while tuna can be ... (Read 153 times)

piesebel

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Suppose rice can be produced in country X at a lower cost than in country Y, while tuna can be produced in country Y at a lower cost than in country X. International competition will:
 a. destroy the rice market in both countries.
  b. drive X to specialize in rice and Y to specialize in tuna.
  c. drive Y to specialize in rice and X to specialize in tuna.
  d. cause both X and Y to reject international specialization.
  e. result in lower total output of rice and tuna.

Question 2

The classical economists argued that the production of goods and services (supply) generates an equal amount of total income and, in turn, total spending. This theory is called:
 a. Keynes' General Theory.
  b. Say's Law.
  c. the animal spirits theory.
  d. the law of autonomous consumption.



aidanmbrowne

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Answer to Question 1

b

Answer to Question 2

b



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