If a Country Maintains Its Level of Exports to Another

question 65

Multiple Choice

If a country maintains its level of exports to another country under free trade,even after its world price is equalized and there are no international shortages or surpluses,it must have a

• A) comparative advantage in that good.
• B) comparative disadvantage in that good.
• C) lower domestic price for the good than would be the case if trade were not permitted.
• D) higher rate of domestic consumption of the good than would be the case if trade were not permitted.
• E) persistent domestic shortage of the good that necessitates a tariff on it.

---

Definitions:

Reality

Refers to the state of things as they actually exist, as opposed to how they may appear or might be imagined.

Socially Conscious

Being aware of and responsive to societal and social issues and injustices.

Generalized Other

A concept in sociological theory referring to the social control exercised by common social norms and values over an individual.

Self

Refers to the individual's consciousness of their own identity and personal characteristics.