Textbook Examples of Trade Between Two Nations Are Simplified in Order

question 61

Multiple Choice

Textbook examples of trade between two nations are simplified in order to show how two nations both benefit from trade.These examples are misleading because

• A)in the real world,rich countries can take advantage of poor countries.
• B)they do not account for the reduction in wages that occurs in both countries as a result of trade.
• C)some individuals in both countries may be made worse off because of trade.
• D)trade restrictions are likely to be imposed as trade grows over time.

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Definitions:

Simplify

To simplify a mathematical expression or problem to its most basic version.

Competitive Output Markets

Markets where multiple firms sell similar or identical products, and prices are determined through competition among sellers.

Exponent

In mathematics, a number indicating how many times a base is to be multiplied by itself.

Binomial

A polynomial expression that contains exactly two terms, typically written in the form a+b.