The effect of opening trade between countries is
A. living standards rise in the country with efficient, high-pay workers.
B. both countries can exploit comparative advantage and increase productivity.
C. total world production increases as both countries specialize in specific goods.
D. All of the above are correct.
Answer: D
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In the above figure, the long-run average cost curve exhibits diseconomies of scale
A) between 5 and 10 units per hour. B) between 10 and 20 units per hour. C) between 20 and 25 units per hour. D) along the entire curve.
Refer to Figure 9-2. With the tariff in place, the United States produces
A) 9 million pounds of rice. B) 15 million pounds of rice. C) 31 million pounds of rice. D) 42 million pounds of rice.
In the specific factors model, a 5% decrease in the price of food accompanied by a 5% decrease in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in
the welfare of the fixed factor in the production of cloth. A) no change; no change; no change B) an increase; an increase; an increase C) a decrease; an increase; an increase D) an increase; a decrease; a decrease E) a decrease; a decrease; a decrease
The current demand for money increases when
A) current real income increases. B) future real income decreases. C) the nominal rate of interest increases. D) none of the above.