The United States has a comparative advantage and specialize in the production of airplanes. Compared to the situation with no trade, which of the following will occur?
A) More airplanes will be produced in the United States.
B) There will be no change in the price of airplanes in the United States.
C) The world price of airplanes will increase.
D) The quantity of airplanes demanded in the United States will increase.
Correct Answer:
Verified
Q10: The fundamental force that drives international trade
Q11: The United States has a comparative advantage
Q12: With international trade, a country will export
Q14: Who benefits from imports?
A) domestic consumers
B) domestic
Q16: Compared to the situation before international trade,
Q17: The gains from trade that are possible
Q18: Which of the following is CORRECT?
A) Both
Q19: The goods and services that our country
Q20: Compared to the situation before international trade,
Q22: The United States has a comparative advantage
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