10

The table below shows the maximum quantities of two goods that each country can produce. According to this table, which country has the comparative advantage in producing vibranium?

	Vibranium (tons)	Gold (tons)
Wakanda	8 tons	2 tons
Zamunda	2 tons	1 ton

Group of answer choices

Both countries have comparative advantage in vibranium.

Wakanda

Zamunda

Neither country has comparative advantage in vibranium.

11

The table below shows the maximum quantities of two goods that each country can produce. If the countries follow the principle of comparative advantage, what good(s) should each country produce?

	Vibranium (tons)	Gold (tons)
Wakanda	8 tons	2 tons
Zamunda	2 tons	1 ton

Group of answer choices

Both countries should produce both goods to avoid vulnerabilities associated with trade.

Wakanda should produce vibranium and gold and Zamunda should import both goods.

Zamunda should produce vibranium and gold and Wakanda should import both goods.

Wakanda should produce gold and Zamunda should produce vibranium.

Wakanda should produce vibranium and Zamunda should produce gold.

13

The infant industry argument claims

Group of answer choices

that governments should protect some domestic industries until they are internationally competitive.

that human infants have a comparative advantage in producing certain goods.

that countries should focus on developing their current comparative advantage.

that free trade is always the best policy.

that governments should provide subsidies to domestic industries indefinitely.

14. The demand curve shows

Group of answer choices

the quantities that buyers are willing to purchase at different incomes.

household expenditures over time.

All of these answers are correct.

the quantities that buyers are willing to purchase at different prices.

the quantities that sellers are willing to supply at different prices.

17

If a supply curve is upward sloping, then

Group of answer choices

an increase in price will lead to a decrease in the quantity supplied.

a decrease in price will lead to a decrease in the quantity supplied.

the good in question is a giffen good.

a decrease in price will lead to an increase in the quantity supplied.