The basis for international trade is
A. self-sufficiency.
B. specialization.
C. amassing national wealth at the expense of trading partners.
D. maximizing your exports and minimizing your imports.
B. specialization.
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Expansionary fiscal policy in an open economy
A. leads to a balance of trade surplus. B. decreases America’s capital account surplus and the current account deficit by the same amount. C. increases both America’s capital account surplus and current account deficit by equal amounts. D. increases America’s capital account surplus more than it increases the current account deficit.
What is the effect on real GDP per person if labor productivity increases? What is the effect on the nation's standard of living?
What will be an ideal response?
Which of the following could lead to an increase in worker productivity?
a. A decrease in the physical capital stock b. An increase in the number of workers c. A war that destroys an enormous amount of plant and equipment d. An increase in the physical capital stock e. A decrease in the human capital stock
The U.S. Air Force pays a Turkish citizen $30,000 to work on a U.S. base in Turkey. As a result,
a. U.S. government purchases increase by $30,000; U.S. net exports decrease by $30,000; and U.S. GDP is unaffected. b. U.S. government purchases increase by $30,000; U.S. net exports are unaffected; and U.S. GDP increases by $30,000. c. U.S. government purchases, net exports, and GDP are unaffected. d. U.S. government purchases are unaffected; U.S. net exports decrease by $30,000; and U.S. GDP decreases by $30,000.