The small country general equilibrium (PPF/indifference curve) model of international trade brought out a number of important points, among which is/are:
A) Whenever the relative prices of goods are the same, countries can enhance national welfare by engaging in exchange, but they cannot gain from specialization.
B) Producers will specialize and produce more of the goods that, compared to world prices, were relatively expensive at home and fewer of the goods that were relatively cheap.
C) A country exports goods that are relatively cheap at home, compared to overseas prices, and imports goods that are relatively expensive at home.
D) All of the above.
E) None of the above.
Correct Answer:
Verified
Q10: Surveys generally show that:
A) Americans strongly support
Q11: The production possibilities frontier is typically drawn
Q12: The following is a property of indifference
Q13: If an economy insists on remaining completely
Q14: The general equilibrium model of international trade
Q16: The small country general equilibrium (PPF/indifference curve
Q17: The huge differences in standards of living
Q18: The relative equality of per capita incomes
Q19: World economic growth over the past 200
Q20: Dynamic models:
A) describe how the model's equilibrium
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