Suppose Country X Currently Produces Widgets

question 61

Multiple Choice

Suppose country X currently produces widgets. Then it establishes a regional trade agreement with country Y. Following the formation of the regional trade agreement, country X no longer produces widgets and now imports widgets from country Y. What has occurred?

• A) There is trade diversion and a welfare gain for both country X and country Y.
• B) There is trade diversion, a welfare gain for country Y, and a welfare loss for country X.
• C) There is trade creation and a welfare gain for both country X and country Y.
• D) There is trade creation, a welfare gain for country Y, and a welfare loss for country X.

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Definitions:

Dominant

Influential, controlling, or prevailing over others, often used in both social and biological contexts to describe an entity with superior power or genes.

Genetic Counseling

The discipline that focuses on helping people deal with issues relating to inherited disorders.

Psychological Counseling

is the provision of professional assistance and guidance in resolving personal or psychological problems, facilitated by a qualified therapist or counselor.

Inherited Disorders

Genetic disorders passed down from parents to their offspring through their genes.