If the Autarkic and World Relative Prices Are Equal,then

question 63

Multiple Choice

If the autarkic and world relative prices are equal,then

• A) consumers are better off with trade than without trade.
• B) the country has the option of supplying either good in the world market.
• C) no gains from trade are possible.
• D) the world markets are not in equilibrium.

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Definitions:

Monetary Incentive

A financial reward given to employees, customers, or other stakeholders to motivate specific behaviors or outcomes.

Cash Discount

A reduction in the amount owed by a customer if payment is made within a specified period.

Prompt Payment

Timely payment for goods or services, often within a specified period to avoid penalties or to qualify for discounts.

Credit Sale

A transaction where the payment for goods or services is deferred, allowing the buyer to pay at a later date.