-If the World Price of a Good Is Below the No-Trade

question 85

Multiple Choice

-If the world price of a good is below the no-trade domestic price, a country

• A) will benefit from importing the good.
• B) cannot benefit from trade.
• C) has a comparative advantage in the production of that good.
• D) will benefit from exporting the good.
• E) will not engage in trade for that good.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from their face value and maturing at par.

Interest Rate

An Interest Rate is the percentage of principal charged by a lender for the use of its money or the rate earned on deposited funds.

Collection Float

The time period between when a check is deposited in a bank and when the amount is available in the account, affecting cash flow management.

Interest Rate

The rate at which interest is imposed on a loan for the borrower, often expressed as an annual percentage of the outstanding loan.