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:

Privity Rule

A legal principle stating that contracts cannot confer rights or impose obligations upon any person who is not a party to the contract.

Gross Negligent Fraud

Extreme carelessness or reckless disregard for the truth or for the rights of others, often involving fraudulent intentions or outcomes.

Fraudulent Intent

The deliberate intention to deceive or cheat, often for personal gain or to cause loss to another.

Reasonably Foreseeable Users

Individuals who could be expected to use or be affected by a product or service, considered in legal and design considerations.