RHW12ANS

RHW12ANS - 23 29 31 34 Question11 Single Correct 1.0 Point...

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Rhw12 11 20- 23 29- 31- 34 Question11 - Single Correct 1.0 Point Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. If these two countries specialize and trade according to their comparative advantage A all individuals in both countries will benefit. B Greece will specialize in and export cars. C Germany will produce more cars than in the absence of trade. D Germany will produce more fish than in the absence of trade. EACH WILL SPECIALIZE IN WHATEVER THEY HAVE A COMPARATIVE ADVANTAGE IN, PRODUCE MORE OF THAT THEN THEY WOULD IN THE ABSENCE OF TRADE, AND TRADE FOR THE OTHER ITEM Question20 - Single Correct 1.0 Point In the long run, international trade A affects the economy's natural level of employment. B affects the economy's real wage. C does not affect the natural level of employment or the real wage. D increases real wages because it increases a country's standard of living. NATURAL RATE OF UNEMPLOYMENT AND REAL WAGE DEPEND ON FRICTIONAL AND
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This note was uploaded on 02/05/2012 for the course 331 464 taught by Professor Hsu during the Spring '09 term at Rutgers.

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RHW12ANS - 23 29 31 34 Question11 Single Correct 1.0 Point...

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