Preferential trade agreements have a beneficial trade-diversion effect when they reduce prices for traded goods and stimulate the volume of international trade
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Which of the following goods is likely to have an income elasticity of demand greater than one?
A) Salt B) Gasoline C) Diamond jewelry D) Bread
When at least one productive resource is fixed, the firm is producing
a. in the short run. b. in the long run. c. only one type of product. d. at least two products.
When the income-consumption curve has a positive slope throughout its entire length, we can conclude that
A) both goods are inferior. B) both goods are normal. C) the good on the vertical (y) axis is inferior. D) the good on the horizontal (x) axis is inferior.
Which of the following statements is FALSE about opportunity cost?
A) Cost is always foregone opportunity. B) Opportunity cost is the next best alternative. C) John wants a burger and fries. The concept of opportunity cost applies even though he has enough funds to buy both. D) Opportunity cost exists only for goods with monetary values.