The two-country general equilibrium (PPF/indifference curves) model illustrates that:
A) there are gains from trade whenever price ratios of goods are different across countries.
B) relative prices within economies will differ only when production possibilities frontiers differ.
C) differences in production possibilities frontiers may be due to differences in tastes.
D) All of the above.
E) None of the above.
Correct Answer:
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Q20: According to the two-country general equilibrium (PPF/indifference
Q22: The two-country PPF/indifference curves model illustrates that:
A)
Q23: According to the supply and demand model
Q24: According to the supply and demand model
Q25: Producer surplus is:
A) the area between the
Q26: Consumer surplus is:
A) the area between the
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