If Brazil voluntarily ships coffee to the United States in return for airplanes,
a. Brazil will benefit, but the United States will lose.
b. one of the two nations will benefit and the other nation will lose since the trade does not increase the physical quantities of coffee and airplanes available.
c. both Brazil and the United States will benefit since the trade allows each nation to acquire items.
d. both Brazil and the United States will lose since there is no increase in the production of coffee or airplanes and the trade will involve certain transaction costs.
c
You might also like to view...
A good example of a market that resembles a contestable market would be
A. electric power production. B. trucking companies. C. auto manufacturing. D. urgent-care clinics.
It is better to pool risks because you can:
A. increase your income. B. reduce your expected income but increase its standard deviation. C. increase your expected income. D. reduce the variability of expected income.
Refer to the graph shown, which shows the demand and supply for a new vaccine against the common cold. Suppose once vaccinated, a person cannot catch a cold or give a cold to someone else. As a result, the marginal social benefit curve will:
A. lie below the market demand curve. B. coincide with the market demand curve. C. lie above the market demand curve. D. lie strictly below the market supply curve.
Refer to Table 8.5. Assume that fruit baskets are sold in a perfectly competitive market. The market price of a fruit basket is $22. To maximize profits, Exotic Fruit should sell __________ fruit basket(s). A) three B) four C) five D) six