26) the producer that requires a smaller quantity of inputs to produce
a good:
a)should import that good
b)has a comparatvie advantage in the production of that good
c)has an absolute advantage in the production of that good
d)both a and b are correct

27)When a country allows free trade,
a)the domestic price will be greater than the world price
b)the domestic price will be lower than the world price
c)the domestic price will equal the world price
d)it does not matter what the world price is; the domestic price is
the prevailing price

28)Which of the following is NOT true concerning comparative
advantage?
a)the comparative advantage is determined by which person can produce
a good using fewer inputs
b)the principle of comparative advantage applies to countries as well
as people
c)economists use the principle pf comparative advantage to advocate
free trade
d)gains from trade are based on the principle of comparative
advantage.Assume you have two types of producers.  Both types can
produce doors or cabinets.  Producers of Type A can produce 3 doors in
an hour or can produce 15 cabinets in an hour.  Producers of Type B
can produce 1 door in an hour or can produce 3 cabinets.  Assume each
producer is producing the good that it has a comparative advantage in.

29)Which of the following in NOT true concerning advantage?
a)the comparative advantage is determined by which person can produce
a good using fewer inputs
b)the principle of comparative advantage appiles to countries as well
as people
c)economists use the principle of comparative advantage to advocate
free trade
d)gains from trade are based on the principle of comparative advantage

Hello k9queen!!


26) the producer that requires a smaller quantity of inputs to produce
a good:
c)has an absolute advantage in the production of that good.

By definition Absolute advantadge in the production of a good is:
"Producing a good or service using strictly fewer resources (or
producing more with the same resources) than someone else..."
http://pieria.acs.southwestern.edu/econ/oppcost/tsld014.htm

-----------------------------------------------------------

27)When a country allows free trade,:
b)the domestic price will be lower than the world price.

-----------------------------------------------------------

28)Which of the following is NOT true concerning comparative
advantage?

a)the comparative advantage is determined by which person can produce
a good using fewer inputs. FALSE.

The other three statements are TRUE.

------------------------------------------------------------

For more reference please visit the following page:
"Benefits of Trade - The Basics of Foreign Trade and Exchange -
Economic Education - Federal Reserve Bank of New York":
http://www.newyorkfed.org/education/fx/benefits.html


I hope this helps.

PD: Answer to question 29 is not given because it is unclear. If you
want to repost the question 29 as request of an answer clarification I
will gladly answer it for you here.

Regards.
livioflores-ga