Solved

Which Statement Is NOT True

Question 8

Multiple Choice

Which statement is NOT true?


A) If the price of U.S. grain is cheaper than that of Russian grain, and U.S. producers sell cheap grain to Russia, not everyone in Russia will benefit.
B) If the price of U.S. grain is cheaper than that of Russian grain, U.S. producers will have a comparative advantage in grain.
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) According to the laws of absolute and comparative advantage, trade benefits everyone all the time.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents