International trade occurs whenever
a. two nations have achieved internal economic efficiency
b. one of the trading nations is self-sufficient
c. one nation can profit from trade at the expense of another
d. two nations can benefit from trading with each other
e. labor is cheaper in one country than in another
D
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The U.S. sugar quota
A) generates government revenue. B) results in net welfare benefits to the U.S. economy. C) results in benefits to sugar producers that exceed the cost to consumers. D) results in costs to consumers that exceed the benefits to sugar producers. E) does not result in an efficiency loss.
Which of the following will cause the marginal cost curve of making cigarettes to shift?
A) a $5 million penalty charged to each cigarette maker B) a $1 per pack tax on cigarettes C) a $1 million advertising campaign by the American Cancer Society D) All of the above.
If the federal government decreases its expenditures on goods and services by $10 billion and decreases taxes on personal incomes by $10 billion, which of the following will occur in the short run?
A) The federal budget deficit will increase by $10 billion B) The federal budget deficit will decrease by $10 billion C) Aggregate income will remain the same D) Aggregate income will increase by up to $10 billion E) Aggregate income will decrease by up to $10 billion
In general, a firm will be likely to invest as long as the
A. profits realized from the investment are sufficient to cover the interest payments. B. firm can sell bonds directly to the public instead of borrowing from a bank. C. firm doesn't have to borrow any money to make the investment. D. interest rate is less than the inflation rate.