If Good a Costs $10 Per Unit in Country a and $12

question 17

Multiple Choice

If good A costs $10 per unit in country A and $12 per unit in country B, and if transport costs between A and B for the good are $3 per unit, an economist would say that

• A) the good will be exported from A to B.
• B) the good will be exported from B to A.
• C) intra-industry trade will occur in the good.
• D) the good will be a "nontraded good."

---

Definitions:

Statutes

Written laws enacted by legislatures on federal, state, or local levels.

Federal Trade Commission

A United States federal agency responsible for preventing fraudulent, deceptive, and unfair business practices in the marketplace.

Securities and Exchange Commission

A U.S. federal agency responsible for regulating the securities industry, ensuring transparency and protecting investors.

Code of Federal Regulations

A collection of the rules and regulations issued by federal agencies, organized by subject area into a comprehensive reference.