If the World Terms of Trade Equal Those of Country

question 19

Multiple Choice

If the world terms of trade equal those of country H,then

• A) country H but not country F will gain from trade.
• B) country H and country F will both gain from trade.
• C) neither country H nor F will gain from trade.
• D) only the country whose government subsidizes its exports will gain.
• E) country F but not country H will gain from trade.

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Definitions:

Office Supplies

Tangible items used in an office environment for daily operations, such as pens, paper, and staplers.

Stockholders' Equity

The portion of the balance sheet that represents the capital received from investors in exchange for stock, plus retained earnings and minus the company's treasury stock.

Contra Asset

An account on a company's balance sheet that offsets or reduces the balance of a related account.

Prepaid Expense

Expenses paid in advance for goods or services to be received in the future, treated as assets until they are actually consumed or expired.