Suppose that Canadian farmers can grow wheat more cheaply than can U.S. farmers. In the interest of efficiency, what is the desirable outcome?
A) Allow the Canadian farmers to sell their wheat for a lower price.
B) Pass a law in Canada mandating a minimum price for wheat equal to what is charged by U.S. farmers.
C) Pass a law in the United States mandating a maximum price for wheat equal to what is charged by Canadian farmers.
D) Have U.S. citizens boycott Canadian wheat.
A
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The portion of a government's indebtedness owed to foreigners is
A. external debt. B. internal debt. C. not recoverable. D. net debt.
Data on productivity gains in the 1990s in the United States strongly suggest that a significant share of those gains was attributable to:
A) improvements in education and training. B) improvements in information technology. C) substantial reductions in labor costs. D) increased demand for goods and services.
An increase in the price level reduces net exports because
A) it leads indirectly to a higher exchange rate. B) it leads indirectly to a lower exchange rate. C) it leads indirectly to a lower real interest rate. D) it leads directly to higher real money balances.