If the World Price of a Good Is Below the No-Trade

question 45

Multiple Choice

If the world price of a good is below the no-trade domestic price, a country

• A) will benefit from exporting the good.
• B) has a comparative advantage in the production of that good.
• C) will not engage in trade for that good.
• D) will benefit from importing the good.
• E) cannot benefit from trade.

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Definitions:

Regents Of The University Of California V. Bakke

A landmark 1978 Supreme Court case that ruled against rigid racial quotas but allowed race to be considered as one of several factors in college admissions.

Affirmative Action

Policies and procedures designed to combat historical discrimination by providing preferential treatment to underrepresented groups in education, employment, and other areas.

Quotas

Preset limits or targets for the amount of goods or people allowed, often used in international trade or immigration policies.

My Lai Massacre

Massacre of 347 Vietnamese civilians in the village of My Lai by Lieutenant William Calley and troops under his command. U.S. army officers covered up the massacre for a year until an investigation uncovered the events. Eventually twenty-five army officers were charged with complicity in the massacre and its cover-up, but only Calley was convicted. He served little time for his crimes.