Suppose Haiti Has a Comparative Advantage Over Other Countries in Producing

question 43

Multiple Choice

Suppose Haiti has a comparative advantage over other countries in producing sugar,but other countries have an absolute advantage over Haiti in producing sugar.If trade in sugar is allowed,Haiti

• A)will import sugar.
• B)will export sugar.
• C)will either export sugar or export sugar, but it is not clear from the given information.
• D)would have nothing to gain either from exporting or importing sugar.

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Definitions:

Policies

Principles or rules established by organizations, governments, or groups to guide decisions and achieve rational outcomes.

Policies

Guidelines or principles that direct actions towards specific goals or objectives, often set by governments, organizations, or institutions.

Individual Transferable Quotas (ITQs)

Limits (quotas) set by a government or a fisheries commission on the total number or total weight of a species that an individual fisher can harvest during some particular time period; fishers can sell (transfer) the right to use all or part of their respective individual quotas to other fishers.

Tragedy of the Commons

A situation in which individuals act according to their own self-interest regarding a shared resource, depleting or spoiling that resource through their collective action.