The figure below shows the demand (D) and supply (S) curves of corn syrups.Figure 21.3

-Trade diversion reduces worldwide efficiency, because:
A) production is diverted to the country with comparative advantage.
B) production is diverted away from the country with comparative advantage.
C) unnecessary trade restrictions are created in the economies.
D) consumption is diverted to the country having inadequate demand.
E) the cost of transhipment of the goods increases thus raising their prices in the world market.
Correct Answer:
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Q75: The figure below shows the demand (D)
Q76: The figure below shows the demand (D)
Q77: The figure below shows the demand (D)
Q78: The figure below shows the demand (D)
Q79: The figure below shows the demand (D)
Q81: The figure below shows the demand (D)
Q82: The figure below shows the demand (D)
Q83: The figure below shows the demand (D)
Q84: The figure below shows the demand (D)
Q85: The figure below shows the demand (D)
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