Assume That the Two Nations Described Below Produce Only the Goods

question 57

Multiple Choice

Assume that the two nations described below produce only the goods listed. What will be the result of opening the door to free trade?

• A)A will export both X and Z to B.
• B)A will import X and export Z.
• C)A will export X and import Z.
• D)A will import both X and Z.
• E)No trade will take place.

---

Definitions:

Negotiate

To engage in discussions aimed at reaching an agreement, especially in the context of contracts, prices, or terms of an arrangement.

Forged Instrument

A document that has been illegally altered or fabricated to deceive and is used in the commission of fraud, such as a counterfeit check.

Transfer Warranty

A legal guarantee assumed by a person who transfers a negotiable instrument, asserting that certain conditions about the instrument are met.

Authentic

Genuine or verified to be original and not a copy or fake.