If the world terms of trade equal those of country F, then
A) country H but not country F will gain from trade.
B) country H and country F will both gain from trade.
C) neither country H nor F will gain from trade.
D) only the country whose government subsidizes its exports will gain.
E) country F but not country H will gain from trade.
A
You might also like to view...
An IRA (Individual Retirement Account) allows taxpayers to invest money out of their personal income before taxes
Financial advisors will often tell their clients that they will realize more net pay (income after taxes) if they invest with an IRA versus saving their money in a simple savings account at a bank. Explain how this is so.
In producing a sweater, a man who shears sheep pays a farmer $4 for a sheep. The shearing shop sells the wool to a knitting mill for $7 . The knitting mill buys the wool and makes it into a fine fabric and sells it to a sweater-making firm for $13 . The sweater- making firm sells the sweater to a clothing store for $20, and the clothing store sells the sweater, gift wrapped, for $50 . What is the
contribution to GDP of the previous sales transactions? a. $4 b. $20 c. $24 d. $50 e. $94