Suppose a Country Abandons a No-Trade Policy in Favor of a Free-Trade

question 134

Multiple Choice

Suppose a country abandons a no-trade policy in favor of a free-trade policy.If,as a result,the domestic price of beans increases to equal the world price of beans,then

• A)that country becomes an exporter of beans.
• B)that country has a comparative advantage in producing beans.
• C)at the world price,the quantity of beans supplied in that country exceeds the quantity of beans demanded in that country.
• D)All of the above are correct.

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Definitions:

Acceptance Cycle

A process through which new ideas or products undergo phases of acceptance, from initial skepticism to widespread adoption.

Collective Selection

The process by which a group or society makes choices or decisions that affect the group as a whole.

Symbolic Interactionism

A sociological perspective focusing on the roles of symbols and language in human interaction and how they influence social life.

Sociological Models

Theoretical frameworks that aim to understand societal structures, relationships, and behaviors.