If the World Terms of Trade for a Country Are

question 38

Multiple Choice

If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F,then

• A) country H but not country F will gain from trade.
• B) country H and country F will both gain from trade.
• C) neither country H nor F will gain from trade.
• D) only the country whose government subsidizes its exports will gain.
• E) country F but not country H will gain from trade.

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Definitions:

Californios

The Hispanic residents of California before it became part of the United States, who were the original landowners and residents of the region when it was under Spanish and then Mexican rule.

Epidemic Disease

A disease outbreak that affects a large number of people within a community, population, or region over a short period.

Landholdings

Owned plots of land, varying in size and use, that can be agricultural, commercial, residential, or for conservation.

Illegal Squatting

Refers to the occupation of land or property without the permission of the owner or legal authority.