The trade-creation effect refers to:
a. the outcome of a preferential trade agreement that reduces economic efficiency by shifting production to a higher-cost producer.
b. the effect of an increase in the quantity of imports relative to the effect of a tariff applicable to all imports.
c. the outcome of a preferential trade agreement that allows a country to obtain goods at a lower cost than is available at home.
d. the effect of a diversion of production to a country that has comparative advantage due to a free trade agreement.
e. the effect of a decrease in the quantity of exports relative to the effect of a subsidy applicable to all exports.
c
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Which of the following statements is true of the U.S. economy before 1800?
A) The U.S. economy was growing at an average rate of more than 6% per annum. B) There were no major achievements in arts. C) Sustained economic growth was rare or absent in the U.S. economy. D) There were no major achievements in science and technology.
Which of the following advances contributed to the "new economy" of the mid-1990s?
A) the increased use of the Internet in selling products and services B) the lower cost and increased availability of laptop computers C) expanded cell phone use D) all of the above
If you pay a constant percentage of your taxable income in taxes, the tax is
A) regressive. B) random. C) proportional. D) progressive.
Cheryl is a professor at a local university. She hired a student from the university to babysit for her children and paid the student a wage higher than the typical wage paid to babysitters in her area to ensure the babysitter's reliability and that attention is paid to her children. What is the name for this above-equilibrium wage?