If the domestic consumers of a good benefit from free trade, it suggests that the country:
A. is a net importer of that good.
B. is not able to produce that good.
C. is a net exporter of that good.
D. has a comparative advantage in that good.
Answer: A
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Which of the following statements is TRUE?
A) Real GDP fluctuates around potential GDP. B) Potential GDP fluctuates around real GDP. C) Potential GDP is the same as real GDP. D) When all of the economy's resources are fully employed, the value of production is called real GDP.
Which of the following is likely to increase measured GDP in the United States?
A) Florida implements a state income tax, prompting more Floridians to obtain jobs in the underground economy. B) Nissan increases production in its Japanese factories to produce more cars for export to the United States. C) Prostitution is legalized in all 50 states. D) A greater number of men in California decide to become "stay-at-home dads" to take care of their kids.
If the nominal interest rate is 8 percent and the rate of inflation is 3 percent, then the real interest rate is
a. -5 percent. b. 1.67 percent. c. 5 percent. d. 11 percent.
If Anne receives more satisfaction as she consumes more shoes, then:
A. the marginal utility of shoes is positive. B. the marginal utility of shoes is negative. C. the marginal utility of shoes is constant. D. the marginal utility of shoes is zero.