Which of the Following Statements Correctly Describes International Trade in Accordance

question 115

Multiple Choice

Which of the following statements correctly describes international trade in accordance with comparative advantage?

• A)Trade is impossible unless there exists a purely competitive market for foreign exchange.
• B)Trade makes all the citizens of the trading countries better off,which is a clear example of a Pareto improvement.
• C)Trade may well make some citizens in each trading country worse off.
• D)Trade requires the judicious application by government of tariffs and quotas in order to discourage production according to comparative disadvantage.
• E)Trade requires that the economies of the trading partners be of roughly equal size (United States versus Andorra just does not work).

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Definitions:

Compound Name

A compound name is the unique, standardized name given to a chemical compound, based on the system of nomenclature established by the International Union of Pure and Applied Chemistry (IUPAC).

Chemical Formula

A notation that uses chemical symbols and numbers to represent the composition of a compound, indicating the types and numbers of atoms involved.

Lye

Lye refers to a strong alkaline solution, particularly of sodium hydroxide (NaOH) or potassium hydroxide (KOH), used in cleaning, soap making, and food preparation.

pH

A scale that measures the acidity or alkalinity of a solution, where 7 is neutral, values below 7 are acidic, and values above 7 are alkaline.