Author Question: Refer to Figure 5-1. The efficient equilibrium price is A) 60. B) 50. C) 40. D) < ... (Read 60 times)

jwb375 · **on:** Jun 29, 2018

Refer to Figure 5-1. The efficient equilibrium price is

A) 60. B) 50. C) 40. D) < 40.

Question 2

Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade positions, trade makes both countries better off because in each country

A) total employment is greater. B) total welfare is greater.
C) total consumption of goods is greater. D) wages are higher.