If production costs on the price and quantity of flat-screen TVs fall, ( )
A. Producer surplus increases
B. Producer surplus increases
Consumer surplus increases
D. Consumer surplus decreases
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Which goods will a nation typically import? ( )
A. those goods in which the nation has an absolute advantage
B. those goods in which the nation has a comparative advantage
C. those goods in which other nations have an absolute advantage
D. those goods in which other nations have a comparative advantage
Suppose that in the United States, producing an aircraft takes 10,000 hours of labor and producing a shirt takes 2 hours of labor. In China, producing an aircraft takes 40,000 hours of labor and producing a shirt takes 4 hours of labor. What will these nations trade? ( )
A. China will export aircraft, and the United States will export shirts.
B. China will export shirts, and the United States will export aircraft.
C. Both nations will export shirts.
D. There are no gains from trade in this situation.
Which of the the following statements is true true ? ( )
A. “Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods.”
B. “Certain very talented people have a comparative advantage in everything they do.”
C. “If a certain trade is good for one person, it can’t be good for the other one.”
D. “If trade is good for a country, it must be good for everyone in the country.”
An increase in ( ) will cause a movement along a given demand curve, which is called a change in ( ) .
A. supply, demand
B. supply, quantity demanded
C. demand, supply
D. demand, quantity supplied
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