Suppose Belgium produces only two goods, chocolate and lace. If ...

[swpotter12]

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

[Brenm]

Answer to Question 1

B

Answer to Question 2

E

[swpotter12]

Thanks for the timely response, appreciate it

[alexanderhamilton]

Excellent