Why is the net gain from international trade positive?
What will be an ideal response?
The net gain from international trade is positive because the gain to the winners exceeds the losses to the losers. For instance, in the case of an imported good, the gain to consumers exceeds the loss to producer so society gains on net. The situation is similar for exports: The gain to producers exceeds the loss to consumers..
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Which of the following is consistent with the law of demand?
A) People substitute higher-priced goods for higher-quality goods. B) People substitute some higher-priced goods for other higher-priced goods. C) People substitute lower-priced goods for higher-priced goods. D) People substitute some lower-priced goods for other lower-priced goods.
The demand curve facing a monopolistic firm is
A. upward sloping. B. downward sloping. C. vertical. D. horizontal.