The Net Loss from Trade Diversion for a Country Is

question 35

Multiple Choice

The net loss from trade diversion for a country is likely to be smaller if:

• A)the county's import demand is more elastic.
• B)the country's tariff rate on the product is higher.
• C)the good can be produced at relatively lower cost in the bloc-partners than in the outside world.
• D)the bloc partner's export price is closer to the tariff-inclusive price for imports from countries outside the bloc.

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Definitions:

Acting Basis

The foundational principle or reason behind the execution of a particular role or behavior.

Benevolence

The quality of being well-meaning and kindly, often characterized by acts of generosity and compassion towards others.

Autonomous Morality

The stage of moral development in which individuals recognize that moral rules are created by people and that individuals can question or challenge societal norms based on personal principles of justice or fairness.

Heteronomous Morality

Refers to the stage of moral development in children where rules are perceived as fixed and unchangeable, often enforced by authority figures.