In a Two-Country Two-Good Model, If a Country Has a Comparative

question 44

Multiple Choice

In a two-country two-good model, if a country has a comparative advantage in the production of a certain good, it implies that this country:

• A)also has an absolute advantage in the production of this good.
• B)will start importing this good from the other country.
• C)can produce this good at a lower opportunity cost than the other country.
• D)uses most of its resources in the production of this good .

Identify the conditions under which price controls lead to shortages or surpluses in the market.

Understand the concepts of demand, supply, and market equilibrium.

Analyze the effects of price floors and price ceilings on market outcomes.

Calculate shortages and surpluses in the market given government interventions such as price floors and price ceilings.

---

Definitions:

Vesicular Breath Sound

Normal breathing sounds made by air moving through the small airways in the lungs.

Inspiratory Phase

The period during breathing when air is inhaled into the lungs.

Expiratory Phase

The phase of respiration where air is expelled from the lungs, usually following the inspiratory phase during which air is inhaled.

Human Papillomavirus Vaccine

A vaccine designed to prevent infections by certain types of human papillomavirus (HPV), which can lead to cervical cancer and other HPV-related diseases.