When a nation first begins to trade with other countries and the nation becomes an exporter of soybeans,
a. this is an indication that the world price of soybeans exceeds the nation's domestic price of soybeans in the absence of trade.
b. this is an indication that the nation has a comparative advantage in producing soybeans.
c. the nation's consumers of soybeans become worse off and the nation's producers of soybeans become better off.
d. All of the above are correct.
d
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Suppose a nation's population grows by 2 percent and, at the same time, its GDP grows by 5 percent. Approximately how fast will real GDP per person increase?
A) 3 percent per year B) 2 percent per year C) 5 percent per year D) 10 percent per year
When the government produces and sells water, some of the revenues earned represent taxation
a. True b. False
Which of the following is TRUE?
a. Maximizing division profits will always lead to maximizing company profit b. Maximizing division profits will always lead to minimizing company profit c. Maximizing division profits can sometimes lead to reducing company-wide profit d. Maximizing division profits has no effect on company-wide profits
If the demand for product R increases as the price of product S increases, then _____
a. consumer preferences for S have increased b. R and S are not related goods c. R and S are substitutes d. R and S are complements e. R is an inferior good