Which of the following is one reason why trade makes all parties better off?
a. Because it always expands the amount of domestic production of each good and service, and more is preferred to less.
b. Because it permits all parties to acquire some items better suited to their tastes
c. Because it makes people appreciate what they have, and they are happier.
d. Because it encourages consumption rather than saving.
b
You might also like to view...
Under the fixed rate regime foreign countries could hold their dollar exchange rates constant by
A) using tight monetary policy. B) using expansionary fiscal policy. C) negotiating with the central bank of the United States. D) setting their domestic interest rate equal to the U.S. interest rate. E) holding their exchange rates constantly pegged to the euro and yen.
When gold prices become more volatile, the ________ curve for gold shifts to the ________; ________ the price of gold
A) supply; right; increasing B) supply; left; increasing C) demand; right; decreasing D) demand; left; decreasing
Robert Higgs and Louis Stettler (1970) find evidence to suggest that colonial couples married at a younger age than those in Europe, thus explaining the relatively high birth rates in colonial America
Indicate whether the statement is true or false
How can comparative advantage yield gains from trade?
What will be an ideal response?