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:

Stock Dissipation Rate

The rate at which a stock resource, like fish in a fishery or trees in a forest, is used up or depleted over time.

Pesticide Pollutants

Chemical substances used to kill pests, but when misused or overused, they can become environmental pollutants, affecting non-target species and ecosystems.

Great Lakes

A group of five large lakes in North America that include Lakes Superior, Michigan, Huron, Erie, and Ontario, forming the largest freshwater system on Earth.

Treatment Plant

A facility designed to process wastewater or sewage to remove contaminants and produce effluent that is safe for release into the environment.