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

question 112

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

---

Definitions:

Test Scores

Quantitative values assigned to the performance of individuals on standardized tests or examinations.

Cognitive Load

The total amount of mental effort being used in the working memory.

Reaction Range Model

A concept in genetics and psychology that suggests while genes determine the range of possible outcomes for certain traits, the environment influences where within that range an individual will fall.

Reaction Range Model

A theory suggesting that genetics set certain limits on intelligence, personality and other traits, but that environment determines where within these limits an individual will fall.