Author Question: Suppose Belgium produces only two goods, chocolate and lace. If Belgium has a comparative advantage ... (Read 92 times)

swpotter12 · **on:** Jun 30, 2018

Suppose Belgium produces only two goods, chocolate and lace. If Belgium has a comparative advantage in lace, a move toward free trade will

A) benefit chocolate workers, harm lace workers in the short run, but benefit the nation as a whole.
B) harm chocolate workers in the short run, benefit lace workers, but benefit the nation as a whole.
C) benefit chocolate workers, harm lace workers in the short run, but harm the nation as a whole.
D) harm chocolate workers in the short run, harm lace workers, but benefit the nation as a whole.

Question 2

________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce.

A) Markets; markets
B) Firms; households
C) Factor markets; goods markets
D) Entrepreneurs; firms
E) Firms; firms