An effect of international trade is
A. that the United States has a trade surplus.
B. that only countries that have absolute advantage in producing a good can participate.
C. the transmission of ideas around the world.
D. the increase in the average price of goods as the cost of transportation has to be included.
Answer: C
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Which of the following is NOT an example of a good with network economies?
A. Internet service B. A computer printer C. A cell phone D. Facebook
Suppose Sarah owns a small company that makes wedding cakes. The accompanying table shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number of Cakes Per DayTotal Cost Per Day0$1001$1802$2203$3004$4005$5206$660 If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $125 each, then Sarah should produce ________ cakes per day.
A. 0 B. 6 C. 3 D. 5
As the time a person has to adjust to a price change increases, the elasticity of demand will ______.
a. decrease b. increase c. remain constant d. fluctuate
The difference between a country's purchases of foreign assets minus foreign purchases of the country's assets during a period of time is
A. net foreign investment. B. net domestic investment. C. net foreign surplus. D. net official reserves.