Which of the Following Statements Is NOT True

question 61

Multiple Choice

Which of the following statements is NOT true?

• A) The law of comparative and absolute advantage benefits everyone all the time.
• B) If the price of U.S.grain is cheaper than that of Russian grain,U.S.producers will have an absolute advantage compared to Russian producers.
• C) If the price of U.S.grain is cheaper than that of Russian grain,then trade between the two countries will depend on the terms of trade.
• D) If U.S.grain is cheaper than Russian grain,and U.S.producers sell cheap grain to Russia,not everyone in Russia will benefit.

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Definitions:

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Poverty Line

A threshold set by governments to define the minimum income level necessary to afford basic necessities, delineating who is considered to be in poverty.

Political Conservatives

Individuals or groups who advocate for maintaining traditional institutions, values, and practices, often emphasizing limited government, personal responsibility, and free-market economy.

Welfare State

A government system that provides social and economic support to its citizens, such as healthcare, education, and social security.