If a Country Is Not Engaged in Trade at All

question 92

Multiple Choice

If a country is not engaged in trade at all with its neighbours,and then begins to trade,it will

• A)experience increases in employment in all industries.
• B)be consuming inside its production possibilities boundary.
• C)import those goods which are acquired more cheaply through trade than through domestic production.
• D)expect a decrease in the average standard of living,but will see increased profits for firms in the export business.
• E)experience an increase in its average standard of living only if it begins with an absolute advantage in the production of all goods.

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Definitions:

Strategy Use

The application of planned methods or tactics aimed at achieving specific goals or overcoming obstacles.

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The condition of one's mind or consciousness, which can include thoughts, beliefs, emotions, and intentions.

Perceptions

The way sensory information is organized, interpreted, and consciously experienced.

Desires

Strong feelings of wanting or wishing for something to happen.