If the Foreign Import Demand Curve Intersects the Home Country's

question 72

Multiple Choice

If the foreign import demand curve intersects the home country's export supply curve in its horizontal portion, then:

• A) the home country will suffer a loss from international trade.
• B) the home country will not gain from trade.
• C) the home country will gain from trade.
• D) the foreign country will not gain from trade.

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Definitions:

Nationalizing Industries

The process by which a government takes control of private industries and transforms them into state-owned enterprises.

Social Security Act

A U.S. law enacted in 1935 that was designed to provide retirement income and assist the unemployed, as well as provide support for the disabled and families with dependent children.

Unemployment Compensation

A government program that provides financial payments to individuals who have lost their jobs through no fault of their own, as a means to alleviate financial hardship during periods of unemployment.

Francis E. Townsend

An American physician who was a prominent advocate for the elderly, known for proposing the Townsend Plan, a precursor to Social Security.