The basic proposition in international trade is that
A. in the long run, imports are paid for by exports.
B. trade is determined by absolute advantage.
C. everyone is made better off by free trade.
D. fair trade is more important than free trade.
Answer: A
You might also like to view...
Long Beach Island, off the coast of New Jersey, is considering building a sand barrier to protect the houses on the island from future hurricanes. The marginal social benefit of the barrier is equal to the
A) marginal private benefit of the person who benefits the most from the barrier. B) marginal private benefit of the person who benefits the least from the barrier. C) sum of the marginal private benefits for anyone who benefits from the barrier. D) difference between the marginal private benefit of the person who benefits the most and the person who benefits the least from the barrier.
A price floor that is set above the equilibrium price
A) causes suppliers to lower their prices. B) is binding. C) is non-binding. D) creates a shortage.
Total revenue decreases as output increases when demand is:
A. perfectly elastic. B. price elastic. C. price inelastic. D. downward sloping.
If two firms expect to be in the market together for a long time, the benefit of underpricing will be large relative to the cost.
Answer the following statement true (T) or false (F)