Author Question: According to international trade theory, a country should: a. import goods in which it has an ... (Read 169 times)

roselinechinyere27m · **on:** Jun 30, 2018

According to international trade theory, a country should:
a. import goods in which it has an absolute advantage.
b. specialize in the production of the good in which it has an absolute disadvantage.
c. export goods when it has either a comparative or absolute disadvantage in producing them.
d. specialize in the production of the good in which they have a comparative advantage.

Question 2

The optimal quantity of pollution is:
a. zero.
b. the level where the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement by the greatest amount.
c. the level where the marginal benefit of pollution abatement exceeds the marginal cost of pollution abatement by the greatest amount.
d. none of the above.