In Analyzing International Trade,we Often Focus on a Country Whose

question 77

Multiple Choice

In analyzing international trade,we often focus on a country whose economy is small relative to the rest of the world.We do so

• A)because it is impossible to analyze the gains and losses from international trade without making this assumption.
• B)because then we can assume that world prices of goods are unaffected by that country's participation in international trade.
• C)in order to rule out the possibility of tariffs or quotas.
• D)All of the above are correct.