A customs union is an organization of nations whose members:
a. have impenetrable trade barriers among themselves but impose no trade barriers on nonmembers.
b. have no trade barriers among themselves but impose common trade barriers on nonmembers.
c. have no trade barriers among themselves but each member country chooses its own trade policies with nonmember countries.
d. retaliate each other by raising reciprocal tariffs and calling for fair trade.
e. neither have trade barriers among themselves nor impose any restriction on the nonmember countries.
b
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Which of the following statements is NOT true about Say's law?
A) Markets would be regularly hit by severe shortages and surpluses. B) People produce more goods than they want for their own use only if they seek to trade them for other goods. C) Desired expenditures will equal actual expenditures. D) Surpluses will be eliminated by falling prices and shortages will be eliminated by increasing prices.
To stay one step ahead of the forces of competition, a firm can adopt any one of these strategies except
a. Cost reduction b. Product differentiation c. Operating where marginal benefits equal marginal costs d. Develop non-fungible valuable resources
MRP represents what the marginal physical product is worth
a. True b. False Indicate whether the statement is true or false
A trade surplus occurs when a country:
A. imports more than it exports. B. imports less than it exports. C. has a zero balance of trade. D. has a negative balance of trade.