Textbook examples of trade between two nations are simplified in order to show how two nations both benefit from trade. These examples are misleading because
A) some individuals in both countries may be made worse off because of trade.
B) trade restrictions are likely to be imposed as trade grows over time.
C) they do not account for the reduction in wages that occurs in both countries as a result of trade.
D) in the real world, rich countries can take advantage of poor countries.
A
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Which of the following is TRUE?
A) For an inferior good, when income increases, the demand curve shifts leftward. B) The demand curve for a good shifts leftward when the price of a substitute rises. C) If consumers expect the price of a good will rise in the future, the demand curve shifts leftward. D) An increase in population shifts the demand curve for most goods leftward.
Compared to their percentage shares in 1968, over the next 40 years, the percentage shares of each of the lowest four quintiles
A. rose substantially. B. rose somewhat. C. stayed about the same. D. declined.
In general, poor countries
A. receive development assistance in order to alleviate poverty. B. have secure property rights, which attract corporations expand their offices in their population centers. C. have slower productivity growth rates than wealthier countries, according to the convergence hypothesis. D. have highly skilled workforces.
April lives in a heavily Democratic voting community. Every election, the Democratic candidates win by a large margin. Since April believed that she already knew what the outcome would be, she has not sought out candidate information or voted for the past few elections. Ben tells her she has displayed rational ignorance. What does Ben mean?
a. April is really showing a lack of intelligence by not getting involved. b. From April’s perspective, it makes sense not to waste her valuable time voting. c. April is not a mind reader and does not really know who will win the elections. d. April likes to make excuses and rationalize her inaction on important matters like voting.