Reference no: EM132990475

Problem 1: A country enjoys a comparative advantage in the production of a good if

Select one:

a. it uses more resources to produce that product than the other country does.

b. it uses fewer resources to produce that product than the other country does.

c. that good can be produced at a lower monetary cost.

d. that good can be produced at a lower cost in terms of other goods.

Problem 2: A Customs Union is

Select one:

a. a group of countries who trade freely with each other but have their own individual trade policies with non-member countries.

b. a group of countries who trade freely with one another, have a common policy concerning trade with non-member countries and a common tax and trade regulation system.

c. a group of countries who trade freely with each other and have a common policy towards trade restrictions with non-member countries.

d. the union of countries that have a common trade policy of protectionist measures against other countries.