Which of the following goods would most probably be an inferior good?

Refer to Table 2-11. If the two countries specialize and trade, who should export wheat?

A) South Korea B) There is no basis for trade between the two countries. C) China D) They should both be exporting wheat.

All of the following would be potential problems if developing nations around the world emphasized export promotion EXCEPT

A) industrial nations may be unable to absorb the exports of many newly industrializing nations. B) it would be much harder to emphasize exports under the WTO framework if the emphasis in exports requires some kind of subsidies. C) export growth may not add to GDP if it crowds out growth in output of goods for domestic consumption. D) export promotion by many countries may lead to economic conflicts. E) current research has clearly established that there is no causal connection between exports and faster economic growth.