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

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