All of the following are reasons countries may be unable to use discriminatory trade practices to enforce labor standards EXCEPT
A) countries can never impose trade barriers on other sovereign nations.
B) the WTO requires nations to treat other nations the same.
C) a single country may be unsuccessful in convincing members of its trading block to participate in imposing the sanctions.
D) retaliation or a full blown trade war might result.
A
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A natural monopoly regulated with an average cost pricing rule is ________
A) efficient and incurs an economic loss B) inefficient and makes zero economic profit C) inefficient and makes an economic profit D) efficient and makes zero economic profit
The graphs above show the production possibilities curves for the U.S. and Canada, which both produce cars and wheat. Determine comparative advantage for each country, and then draw the CPC for each country, assuming that the world price of cars is 1.5 wheat. (Assume that wheat is measured in thousands of bushels.) How would the gains from trade change if the price of cars rose to 1.75 wheat?
What will be an ideal response?