If the Index of Intra­industry Trade for an Industry Is

question 45

Multiple Choice

If the index of intra­industry trade for an industry is zero, then:

• A)exports and imports in that industry are equal.
• B)there are no exports in that industry.
• C)there are no imports in that industry.
• D)there is no trade in that industry.

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Definitions:

MRS of Pencils

The marginal rate of substitution of pencils, indicating how much of another good a consumer is willing to give up for one more pencil.

Utility

In economics, a measure of satisfaction or happiness that a consumer derives from consuming goods and services.

Consumption Bundle

A collection of goods and services that an individual or household purchases over a given period.

Partnership Termination

The dissolution or ending of a partnership agreement, which involves the winding up of its business activities.