Use the Following to Answer Questions

question 80

Multiple Choice

Use the following to answer questions
Figure: Corn and Watches in the United States and Canada
-(Figure: Corn and Watches in the United States and Canada) Referring to the graphs,we see that _____ has the absolute advantage for corn and _____ has the absolute advantage for watches.

• A) the United States;Canada
• B) Canada;the United States
• C) the United States;the United States
• D) Canada;Canada

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Definitions:

Predict Behavior

Predicting behavior involves using information and analysis to foresee the actions of individuals or markets in specific situations.

Oligopolistic Firms

Companies that operate in an industry dominated by a small number of players, where each one has some degree of market power.

React to Each Other

The interaction or response of entities or variables when influenced by changes in each other's state or actions.

Collusion

Agreement among firms to avoid various competitive practices, particularly price reductions. It may involve either formal agreements or merely tacit recognition that competitive practices will be self-defeating in the long run. Tacit collusion is difficult to detect. In the United States, antitrust laws prohibit collusion and conspiracies to restrain trade.