The United States decides to follow its comparative advantage and specialize in the production of airplanes. Which of the following will occur?
A) more airplanes will be produced in the United States
B) there will be no change in the price of airplanes in the United States
C) the quantity of airplanes demanded in the United States will increase
D) the world price of airplanes will increase
Correct Answer:
Verified
Q9: Goods and services that we buy from
Q10: When the principle of comparative advantage is
Q11: The fundamental force that drives international trade
Q12: Consider a market that is initially in
Q13: The fundamental force that generates international trade
Q15: Consider a market that sells some of
Q16: The goods and services that a country
Q17: International trade arises from
A) the advantage of
Q18: Which of the following is correct?
A) Both
Q19: Who benefits from imports?
A) domestic producers
B) domestic
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