Which statement is NOT true?
A) The law of comparative and absolute advantage benefits everyone all the time.
B) If the price of U.S. grain is cheaper than that of Russian grain, U.S. producers will have an absolute advantage.
C) If the price of U.S. grain is cheaper than that of Russian grain, then trade between the two countries will depend on the terms of trade.
D) If U.S. grain is cheaper than Russian grain, and U.S. producers sell cheap grain to Russia, not everyone in Russia will benefit.
Correct Answer:
Verified
Q73: When a country is open to free
Q74: If Japan has a comparative advantage over
Q75: Assume that in the United States, the
Q76: The ratio of the prices of exported
Q77: The United States and Germany both produce
Q78: The terms of trade:
A) determine the prices
Q81: Which statement is true?
A) Free trade harms
Q107: If the domestic price of a good
Q176: In a two-country, two-good model, the
A) exports
Q215: In a two-country model, consumers in the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents