Suppose Belgium produces only two goods, chocolate and lace. If Belgium has a comparative advantage in lace, a move toward free trade will
QUESTION 5
Suppose Belgium produces only two goods, chocolate and lace. If Belgium has a comparative advantage in lace, a move toward free trade will
A. | harm chocolate workers in the short run, benefit lace workers, but benefit the nation as a whole. | |
B. | benefit chocolate workers, harm lace workers in the short run, but harm the nation as a whole. | |
C. | harm chocolate workers in the short run, harm lace workers, but benefit the nation as a whole. | |
D. | benefit chocolate workers, harm lace workers in the short run, but benefit the nation as a whole. |
4 points
QUESTION 6
An import ban results in
A. | an increase in the product’s price. | |
B. | a decrease in the supply of the product. | |
C. | a decrease in the quantity of the product bought and sold. | |
D. | all of the above. |
4 points
QUESTION 7
An import quota
A. | limits the amount of a good that can be imported, thus decreasing prices. | |
B. | increases the amount of a good imported, thus increasing prices. | |
C. | increases the amount of a good imported, thus decreasing prices. | |
D. | limits the amount of a good that can be imported, thus increasing prices. |
4 points
QUESTION 8
A(n) ________ is a trade policy by which a nation agrees to limit its exports of a good in order to avoid more restrictive trade policies.
A. | tariff | |
B. | import ban | |
C. | import quota | |
D. | voluntary export restraint |
In: Economics