If Two Countries Engage in Free Trade Following the Principles

question 33

Multiple Choice

If two countries engage in Free Trade following the principles of comparative advantage,then

• A) neither relative prices nor relative marginal costs (marginal rates of transformation-MRTs) in one country will equal those in the other country.
• B) both relative prices and MRTs will become equal in both countries.
• C) relative prices but not MRTs will become equal in both countries.
• D) MRTs but not relative prices will become equal in both countries.
• E) trade will be unrestricted, regardless of relative costs and MRTs.

Comprehend the cultural and religious interchanges between Byzantium and other medieval societies.

Understand the differences between defined benefit plans and defined contribution plans.

Identify the characteristics and benefits of Education IRAs (Coverdell Education Savings Accounts).

Comprehend the eligibility requirements and coverage of Social Security benefits.

---

Definitions:

Neuronal Synapses

The junctions between neurons, where information is transferred from one neuron to another.

Broca's Aphasia

A condition resulting from damage to the Broca's area of the brain, characterized by difficulty in producing speech but with preserved comprehension.

Frontal Lobe

A part of the brain located in the front area of the skull, responsible for voluntary movements, speech, decision making, and problem-solving.

Adrenal Glands

Endocrine glands located above the kidneys that produce hormones such as adrenaline and cortisol, which help control stress responses, blood pressure, and metabolism.