Author Question: A country that has a comparative advantage in producing capital goods will ________ a country that ... (Read 94 times)

mia · **on:** Jun 29, 2018

A country that has a comparative advantage in producing capital goods will ________ a country that has a comparative advantage in consumption goods.

A) reap all of the gains from trade when it trades with
B) grow slower than
C) reap fewer of the gains from trade when it trades with
D) specialize in producing capital goods and trade with

Question 2

A fall in the price of X from 12 to 8 causes an increase in the quantity of Y demanded from 900 to 1,100 units. What is the cross elasticity of demand between X and Y?

A) 0.5
B) -0.5
C) 2
D) -2