Which Statement Is NOT True

question 65

Multiple Choice

Which statement is NOT true?

• A) If the price of U.S. grain is cheaper than that of Russian grain, and U.S. producers sell cheap grain to Russia, not everyone in Russia will benefit.
• B) If the price of U.S. grain is cheaper than that of Russian grain, U.S. producers will have a comparative advantage in grain.
• C) If the price of U.S. grain is cheaper than that of Russian grain, then trade between the two countries will depend on the terms of trade.
• D) According to the laws of absolute and comparative advantage, trade benefits everyone all the time.

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Definitions:

Quarterly Basis

A time frame used for financial processes, including tax payments and reporting, divided into four equal parts over the year.

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on employers to fund state workforce agencies and unemployment insurance.

Medicare Taxes

Taxes that fund Medicare, a federal health insurance program, deducted from the paychecks of employees and also paid by employers.

Wages

Wages refer to the monetary compensation paid by an employer to an employee in exchange for work performed.