One reason why there may be a bias against free trade is that
a. transportation costs are too high
b. absolute advantage may outweigh comparative advantage
c. those who benefit from trade have little incentive to lobby for it
d. the terms of trade may be too high
e. people prefer importing to exporting
C
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In recent U.S. history
A) GDP has been much higher than GNP. B) GNP has been much higher than GDP. C) the difference between GNP and GDP has been very volatile. D) there has been little practical difference between GNP and GDP.
Suppose the domestic price (no-international-trade price) of copper is $1.20 a pound in the United States while the world price is $1.00 a pound. Assuming no transportation costs, the United States will:
A. have a domestic surplus of copper. B. export copper. C. import copper. D. neither export nor import copper.