Which of the Following Statements Is True

question 63

Multiple Choice

Which of the following statements is true?

• A)Exports benefit trading countries because exports create jobs. Imports do not benefit trading countries because they result in a loss of jobs.
• B)Each year China exports about 50 percent of its wheat crop and 40 percent of its rice crop.
• C)Most of the leading exporting countries are large, high-income countries.
• D)All sectors of the U.S. economy are affected equally by international trade.

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Definitions:

Comparative Advantage

The capability of an entity, whether it be a person, company, or nation, to create a good or offer a service more efficiently, in terms of opportunity cost, than competitors.

Opportunity Costs

The value of the best alternative forgone in making any decision.

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two products that may be produced with available resources.

Opportunity Costs

The disclaim of potential advantage from other options when a particular choice is favored.