Australia has a comparative advantage and specialises in the production of coal. Compared to the situation with no trade, which of the following will occur?
A) There will be no change in the price of coal in Australia.
B) The world price of coal will increase.
C) The quantity of coal demanded in Australia will increase.
D) More coal will be produced in Australia.
Correct Answer:
Verified
Q24: An import quota protects domestic producers by
A)
Q25: Tariffs and import quotas both result in
A)
Q26: If Australia imposes a tariff of $1
Q27: Australia has a comparative advantage in producing
Q28: Which of the following statements is true?
A)
Q30: It is possible for Australia to compete
Q31: Comparative advantage implies that a country will
A)
Q32: _ occurs when a foreign firm sells
Q33: When considering rent seeking, which of the
Q34: The gains from trade that are possible
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents