Author Question: A country can benefit by indulging in international trade when: a. it produces a good in which it ... (Read 64 times)

soccerdreamer_17 · **on:** Jun 30, 2018

A country can benefit by indulging in international trade when:
a. it produces a good in which it has absolute disadvantage.
b. it produces a good in which its trading partner has an absolute advantage.
c. it produces a good in which it has comparative advantage.
d. it produces all the goods which are supported by its resources.
e. it produces nothing and merely depends on foreign imports.

Question 2

The tendency of those who are insured to take more risks as a result is a problem of:
a. free riding.
b. moral hazard.
c. adverse selection.
d. positive externalities.