Relative to a No-International-Trade Initial Situation, If the United States

question 105

Multiple Choice

Relative to a no-international-trade initial situation, if the United States had a comparative advantage in wine production and exported wine, the U.S. domestic price of wine:

• A)​would rise, but domestic output would fall.
• B)​would fall, but domestic output would rise.
• C)​would rise, and domestic output would rise.
• D)​would fall, and domestic output would fall.

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Definitions:

An American Dilemma

A seminal study by Gunnar Myrdal published in 1944 that examined the contradictions between the American ideals of democracy and the treatment of African Americans.

Gunnar Myrdal

A Swedish economist and sociologist, best known for his seminal work "An American Dilemma" (1944), in which he examined the issue of race and class in the United States.

Racial Discrimination

Differential treatment of individuals on the basis of their race, which can affect employment, housing, access to education, and treatment by law enforcement.