Consider the Sources of the Gains from International Trade

question 102

Multiple Choice

Consider the sources of the gains from international trade.Governments often implement programs designed to encourage research and development.Such programs may change the comparative advantage of that country because

• A)they are expected to change the endowments of each country.
• B)they are expected to lead to improvements in technology.
• C)they will raise the costs of production of the trading partners.
• D)the opportunity costs of exported products cannot change.
• E)increases in research and development always lead to an increase in imports.

---

Definitions:

Nitrification

A microbiological process by which ammonia is oxidized to nitrate ions, an essential step in the nitrogen cycle.

Nitrogen Fixation

The process by which atmospheric nitrogen is converted into a form usable by plants, often facilitated by bacteria.

Assimilation

The process by which living organisms integrate nutrients from their environment into their own biological processes.

Assimilation

The process by which living organisms integrate nutrients from their environment to carry out biological functions.