Suppose Canada Produces Only Two Goods,corn and Automobiles

question 72

Multiple Choice

Suppose Canada produces only two goods,corn and automobiles.If Canada has a comparative advantage in automobiles,a move toward free trade will

• A) harm automobile workers, benefit corn workers, but benefit the nation as a whole.
• B) harm automobile workers, harm corn workers, but benefit the nation as a whole.
• C) benefit automobile workers, harm corn workers, but harm the nation as a whole.
• D) benefit automobile workers, harm corn workers, but benefit the nation as a whole.

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Definitions:

Code and Restatement

Legal documents that systematically collect statutes, codes, or common law principles, simplifying and clarifying the law.

Donee Beneficiaries

Individuals or entities that receive benefits from a contract, though they are not one of the primary parties involved in the agreement.

Creditor Beneficiaries

Third parties that benefit from a contract between two other parties because one party promises to pay a debt owed to the beneficiary.

Incidental Beneficiaries

Individuals or entities that unexpectedly benefit from a contract, despite not being directly involved in its formulations.