Author Question: Differences in the productivity of labor account for comparative advantage if: a. the minimum wage ... (Read 35 times)

Cooldude101 · **on:** Jun 30, 2018

Differences in the productivity of labor account for comparative advantage if:
a. the minimum wage varies across the countries.
b. the size of the domestic market varies across the countries.
c. different countries have differences in labor hours required to produce each good.
d. the strength of workforce varies across countries.
e. the laborers are paid different wages in different countries.

Question 2

Without government intervention, society is likely to get too much production of: i. private goods that generate external costs ii. private goods that generate external benefits iii. public goods
a. (i) only
b. (ii) only
c. (iii) only
d. both (ii) and (iii)