If the United States imposes an import quota on clothing, U.S. imports
a. increase, exports increase, and U.S. net exports are unchanged.
b. increase, exports decrease, and U.S. net exports increase.
c. decrease, exports increase, and U.S. net exports decrease.
d. decrease, exports decrease, and U.S. net exports are unchanged.
D
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Which of the following relationships is most likely to exhibit zero correlation?
A) The relationship between the amount received as unemployment benefits in China and the unemployment rate in Canada B) The relationship between education and income C) The relationship between income and savings D) The relationship between wind velocity and rotational speed of wind turbines
If there is no comparative advantage in the production of either of the two goods produced by countries 1 and 2, then
A) the benefits resulting from trade between the two countries are increased. B) there are no gains from specialization and trade between the two countries. C) one country must be more productive in producing all goods than the other. D) each country should specialize in the production of a particular good. E) none of the above