During a period when new entrants are being attracted to an ...

[jeatrice]

During a period when new entrants are being attracted to an industry, we would expect that:
 a. economic profits are positive.
 b. as a result, economic profits are falling.
  c. as a result, economic profits are rising.
  d. both (a) and (b) are true.

Question 2

A country can benefit by indulging in international trade when:
 a. it produces a good in which it has an absolute disadvantage.
  b. it produces a good in which its trading partner has an absolute advantage.
  c. it produces a good in which it has a comparative advantage.
  d. it produces all the goods which are supported by its resources.
  e. it produces nothing and merely depends on foreign imports.

[morganmarie791]

Answer to Question 1

d

Answer to Question 2

c