Why do nations engage in international trade?
What will be an ideal response?
Nations engage in international trade because they gain from trade. International trade results in a more efficient use of resources and thereby increases world output. As a result, it increases the amount of goods and services available for consumption in all nations and thereby makes all countries better off.
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Which of the following statements is TRUE?
A) All nations that belong to the International Monetary Fund have equal voting power. B) The voting power of a nation in the International Monetary Fund is determined by its quota subscription. C) The voting power of a nation in the International Monetary Fund is called special drawing rights. D) The voting procedure in the International Fund is determined by the World Bank.
The marginal tax rate can be calculated by which of the following formulas?
A. total taxes due divided by total taxable income B. total taxable income divided by total taxes due C. the change in taxable income divided by the change in taxes due D. the change in taxes due divided by the change in taxable income
If the demand for plastic surgery is price inelastic,
A. the percentage change in price is less than the percentage change in quantity. B. then when more plastic surgery is performed, total expenditures on plastic surgery will decrease. C. changes in price do not affect the number of operations. D. both b and c E. both a and b
A production function shows
A. How total costs increase as labor is added. B. How a firm's costs of production increase as it produces more goods. C. How a firm's production changes as quantity of labor and other inputs changes. D. How production changes as its unit costs go up.