Author Question: Dutch Disease is associated with a dramatic decline in the demand for a primary commodity produced ... (Read 121 times)

pepyto · **on:** Jun 30, 2018

Dutch Disease is associated with a dramatic decline in the demand for a primary commodity produced by a country.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If the United States could produce 1 ton of potatoes or 1 ton of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, there can be mutual gains from trade if:
a. the United States specializes in potatoes because of its comparative advantage in producing potatoes.
b. the United States specializes in wheat because of its absolute advantage in producing wheat.
c. the United States specializes in wheat because of its comparative advantage in producing wheat.
d. there can be no mutual gains from trade.