How does expanding worldwide trade produce gains for all the nations that participate?
What will be an ideal response?
Expanding trade produces lower prices of goods and services for consumers, access to global markets for exporters, and access to new ideas. In addition, valuable resources, like oil or lumber, can be more readily accessed. All nations will have a comparative advantage in some goods or services, so that all can participate and gain from specialization and trade.
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In 1980 the United States announced an embargo on grain exports to the Soviet Union in response to the Soviet invasion of Afghanistan. This embargo was mainly resisted by
A) U.S. grain consumers of bread. B) U.S. grain producers. C) foreign grain producers. D) U.S. communists. E) economists concerned with U.S. terms of trade.
An estimate is
A) efficient if it has the smallest variance possible. B) a nonrandom number. C) unbiased if its expected value equals the population value. D) another word for estimator.
Which of the following about economic growth is true?
a. The fastest growing economies in the world are mostly less developed countries. b. The fastest growing economies in the world (those with annual real growth rates of 3.5 percent or more) are mostly high-income industrial countries. c. The slowest growing countries in the world, many of which are experiencing declines in per capita GDP, are less developed countries. d. Both a and c are true.
A business cycle is the period of time in which