201-2008-sq__4a - Sample Quiz #4 Ec 202 Michigan State...

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Sample Quiz #4 Ec 202 Spring, 2008 Michigan State University L. Martin 1. When two countries trade, a. each individual and firm in each country benefits; b. any individual benefits from the trades that she engages in; c. particular groups in each country may be hurt by trade in some goods; d. b. and c. are correct; e. none of the above. 2. Which of the following describes the relationship between comparative and absolute advantage? a. If a country has comparative advantage in the production of a good, then it also has absolute advantage. b. If a country has absolute advantage in the production of a good, then it also has comparative advantage. c. A country cannot have absolute advantage and comparative advantage in the production of the same goods. d. All of the above. e. None of the above. 3. If the price of silk ties is $40 and the price of silk handkerchiefs is $20, then the relative price of a silk tie is a. 2 handkerchiefs; b. ½ handkerchief; c. $40; d. $20; e. none of the above.
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This note was uploaded on 03/30/2008 for the course ECON 201 taught by Professor C.liedholm during the Spring '07 term at Michigan State University.

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201-2008-sq__4a - Sample Quiz #4 Ec 202 Michigan State...

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