Trade Diversion May Be Such That the Combined Welfare of Two

question 144

Multiple Choice

Trade diversion may be such that the combined welfare of two nations in the agreement actually _____ because _____ are not completely offset by the _____.

• A) falls; losses of tariff revenue for the importing nation; gain in the exporting nation's producer surplus
• B) rises; gains from trade; loss of jobs in the importing industry
• C) rises; gains in tariff revenue; loss of producer surplus
• D) remains the same; losses of tariff revenue; gains from product variety

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Definitions:

Social Category

A collection of individuals who share a common trait or characteristic, making them distinct from other groups within a society.

Social Structure

The organized pattern of social relationships and social institutions that compose a society.

Dominance

A state or condition of having power and influence over others, often within social, ecological, or hierarchical contexts.

Joking

A form of communication intended to be humorous or amusing.