Which of the following statements is false?
A) Not all individuals in both countries are made better off as a result of international trade.
B) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall.
C) Although some individuals may not be made better off as a result of international trade, both countries may be made better off overall.
D) Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off.
Answer: B
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A 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price. The price elasticity of demand for spinach is
A) 0.5. B) 2.0. C) 10.0. D) 20.0.
A rule that specifies the highest price that a regulated firm is permitted to set is called
A) rate of return regulation. B) price cap regulation. C) maximum price regulation. D) average/marginal cost pricing.
The Alcoa case:
A. supported the structuralist approach to antitrust. B. struck down the treble damages provision of the antitrust laws. C. called for federal regulation of any industry with a four-firm concentration ratio in excess of 50 percent. D. decision was consistent with a behavioralist approach.
Which of the following is a characteristic of a perfectly competitive market?
A. a large number of firms in a market B. selling a standardized product C. no barriers to entry D. All of these