If a Country Is Not Engaged in Trade at All

question 92

Multiple Choice

If a country is not engaged in trade at all with its neighbours,and then begins to trade,it will

• A)experience increases in employment in all industries.
• B)be consuming inside its production possibilities boundary.
• C)import those goods which are acquired more cheaply through trade than through domestic production.
• D)expect a decrease in the average standard of living,but will see increased profits for firms in the export business.
• E)experience an increase in its average standard of living only if it begins with an absolute advantage in the production of all goods.

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Definitions:

Implied Authority

Authority not expressly granted but assumed to be given due to the nature of a job or position.

Apparent Authority

A form of authority that an agent seems to have because of actions or representations made by the principal, leading third parties to reasonably believe the agent is authorized.

Contract

A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.

Implied Authority

The power of an agent to act on behalf of a principal, derived from the actions, words, or conduct of the principal rather than from an explicit written or spoken agreement.