If trade opens up between the two formerly autarkic countries, Australia and Belgium, then
A) the real income of both countries may increase.
B) the real income of Australia and of Belgium will increase.
C) the real income of Australia but not of Belgium will increase.
D) the real income of neither country will increase.
E) the real income of both countries will increase.
A
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A risky small business stands the best chance of finding external financing from
A) a commercial finance company. B) a commercial bank. C) an investment bank. D) trade credit.
Which is the most accurate statement about trade?
a. Trade can make every nation better off. b. Trade makes some nations better off and others worse off. c. Trading for a good can make a nation better off only if the nation cannot produce that good itself. d. Trade helps rich nations and hurts poor nations.
A theory is
A) built on the major factors or variables that the theorist believes explain some event. B) a simplified abstract representation of the real world. C) used to understand the real world. D) a and b E) a, b, and c
Suppose that total expenditures for coffee reach a maximum at a price of $5 per pound. At this price, the demand for coffee is:
A. elastic. B. perfectly inelastic. C. unit elastic. D. inelastic.