Allocative efficiency in a market is achieved when d. the production of a certai

Question

Allocative efficiency in a market is achieved when

d. the production of a certain good is maximized given the scarce resources.

Assume that the Canadian domestic price of lumber without international trade is lower than the world price of lumber. From this information we can deduce that

other countries have a comparative advantage over Canada in the production of lumber and Canada will import lumber..

Imagine that a country X becomes an exporter of shoes. Which of the following statements is true about the welfare situation of the inhabitants of this country?

Which of the following variables is a flow variable?

Explanation / Answer

c. the buyers' willingness to pay for a good equals the producers' cost of production.

Canada has a comparative advantage over other countries in the production of lumber and will export lumber.

C. The domestic producers of shoes become better off whereas the domestic consumers of shoes become worse off; the economic well-being of

D. All of the above are flow variables.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.