Nation 1's share of the gains from trade will be greater:
A) the greater is nation 1's demand for nation 2's exports
B) the closer Px/Py with trade settles to nation 2's pretrade Px/Py
C) the weaker is nation 2's demand for nation 1's exports
D) the closer Px/Py with trade settles to nation 1's pretrade Px/Py
Correct Answer:
Verified
Q5: The gains from exchange with respect to
Q6: Which of the following is not true
Q7: Which of the following statements is false?
A)The
Q8: Which of the following statements is true
Q9: If the internal Px/Py is lower in
Q10: A production frontier that is concave from
Q12: With free trade under increasing costs:
A)neither nation
Q13: Which of the following statements about community
Q14: If Px/Py exceeds the equilibrium relative Px/Py
Q15: Community indifference curves:
A)are negatively sloped
B)are convex to
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