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13) Which of the following theories implies that uniform inefficiency in producing goods or services does not prevent a firm or a country from benefiting

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13) Which of the following theories implies that uniform inefficiency in producing goods or services does not prevent a firm or a country from benefiting from exchange a) Mercantilism b) Comparative cost advantage c) Absolute advantage in cost d) National competitive advantage. 14) Exports can be regulated with taxes for the following reasons except a) To prevent proliferation of sensitive technology b) To prevent price increases due to insufficient domestic supply c) To improve the nation's trade balance d) National security 15) As tariffs are designed to curb imports of goods that may compete with the domestic industries, there are some measures that are supposed to work the same way and yet be no taxes on imports. Mark a non-tariff barrier. a) Domestic content provision b) Custom duties c) Preferential duties d) Ad valorem 16) If in Chile, the cost of production of a ton of cotton is $50 and production of a ton of copper is $120 while in Bolivia these costs are respectively: $30 and $72 then based on the comparative advantage theory a) Chile should specialize in production of copper b) Chile should specialize in production of cotton c) Bolivia should specialize in production of copper d) Specialization will benefit neither country

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