Trade between two countries can benefit both countries if

A) each country exports that good in which it has a comparative advantage.
B) each country enjoys superior terms of trade.
C) each country has a more elastic demand for the imported goods.
D) each country has a more elastic supply for the exported goods.
E) each country produces a wide range of goods for export.


A

Economics

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A) plus; plus; surplus B) minus; minus; deficit C) minus; minus; surplus D) plus; plus; deficit E) plus; minus; surplus

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The greater the substitutability between Northwest timber and Southeast timber, the ________ is the cross elasticity of demand between timber from the two regions and the ________ is the elasticity of demand for Northwest timber

A) smaller; smaller B) smaller; larger C) larger; smaller D) larger; larger

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Which of the following increases in response to the interest-rate effect from a decrease in the price level?

a) investment but not consumption b) consumption but not investment c) neither investment nor consumption d) both investment and consumption

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What is GDP expressed in constant, or unchanging, prices called?

(A) Price level (B) Real GDP (C) Net national product (D) Nominal GDP

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