The "Magnification Effect" Refers to the Fact That, When a Country

question 4

Multiple Choice

The "magnification effect" refers to the fact that, when a country is opened to trade,

• A) the price of the export good rises.
• B) real income is magnified even though the PPF does not change.
• C) the price of the abundant factor rises faster than does the price of the export good.
• D) the price of the scarce factor rises.

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Definitions:

Measure Of Damages

The method by which a court determines the amount of compensation owed to a plaintiff who has suffered harm or injury.

Sales Contract

A legally binding agreement between two parties where the seller agrees to sell and the buyer agrees to buy goods or services under specific terms.

United Nations Convention

An agreement or treaty among member states of the United Nations to regulate specific global issues, adhering to internationally agreed-upon principles.

International Sale Of Goods

Transactions involving the sale of goods between parties situated in different countries, usually governed by specific international laws.