Which of the following statements is true of the gains to trade?
A) The gains to trade expand as trading partners become more alike.
B) The gains to trade shrink as trading partners become more alike.
C) The trading nations can enjoy gains to trade even when none of these countries has a comparative advantage in the production of any good.
D) The gains to trade are equal for all trading partners.
B
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Which of the following is TRUE of the relationship between U.S. trade deficits and federal government budget deficits?
A. Increases in the budget deficit tend to be associated with reductions in the trade deficit. B. Increases in the budget deficit are always associated with reductions in the trade deficit. C. Increases in the budget deficit are always associated with increases in the trade deficit. D. Increases in the budget deficit tend to be associated with increases in the trade deficit.