If two countries participate in free trade:
A) every individual in each country will benefit.
B) both countries as a whole may gain from the trade.
C) one country will benefit, but the other country will experience reduced welfare..
D) neither country will benefit.
Ans: B) both countries as a whole may gain from the trade.
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Which of the following is an example of an activity undertaken by an entrepreneur?
A) being appointed to the U.S. Supreme Court B) choosing the color scheme for your renovated kitchen C) being promoted to the position of Chief of Police D) starting your own snow cone business
Purchasing power parity suggests that
a. Given fixed prices, interest rates adjust so that a good costs the same across two countries b. Given fixed exchange rates, prices adjust such that a good costs the same across two countries c. All of the above d. None of the above