If a Nation Exports Twice as Much of a Differentiated

question 9

Multiple Choice

If a nation exports twice as much of a differentiated product that it imports,its intra- industry (T) index is equal to:

• A)1.00
• B)0.75
• C)0.50
• D)0.25

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Definitions:

Government Failures

Occur when government intervention in the economy leads to inefficiencies, misallocation of resources, or negative outcomes contrary to the intended goals.

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often justifying government intervention.

Economic Activities

Actions that involve the production, distribution and consumption of goods and services at all levels within a society.

Legal Right

An entitlement or justified claim enforceable by law, providing individuals or groups with autonomy or protection in certain aspects of their lives.