The Gravity Model Suggests That Over Time

question 15

Multiple Choice

The gravity model suggests that over time

• A) trade between neighboring countries will increase.
• B) trade between all countries will increase.
• C) world trade will eventually be swallowed by a black hole.
• D) trade between Earth and other planets will become important.
• E) the value of trade between two countries will be proportional to the product of the two countries' GDP.

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Definitions:

Buyers

Buyers are those who acquire products or services for personal use or for resale, generating demand in the market.

Per-unit Tax

A tax that is levied on each unit of a product or service sold.

Buyers

Persons or organizations that buy products or services.

Sellers

Entities or individuals who make goods or services available for purchase by consumers or businesses.