International trade is beneficial to a participating country when that country has a particular product that it is able to sell at a lower price compared to other participating countries
a. True
b. False
Indicate whether the statement is true or false
True
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Using "chain-weighted" prices to calculate real GDP remedies the distortions causes by changes in relative prices over time
Indicate whether the statement is true or false
The fact that trade policy often imposes harm on large numbers of people, and benefits only a few may be explained by
A) the lack of political involvement of the public. B) the power of advertisement. C) the problem of collective action. D) the basic impossibility of the democratic system to reach a fair solution. E) a cycle of political corruption.
According to the No Marginal Improvement Principle, if X* is the best choice, then:
A. MB must be no greater than MC at X* or else a small increase in the activity would increase net benefits. B. MB must be no greater than MC at X* or else a small decrease in the activity would increase net benefits. C. MB must be no less than MC at X* or else a small increase in the activity would increase net benefits. D. the difference between MB and MC must be as great as possible.
If there is excess demand
What will be an ideal response?