"Because the United States is the largest economy in the world and can produce anything it needs domestically, there are no gains from trade for the United States." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is incorrect. The United States, like any other nation, gains from trade when it specializes according to comparative advantage.
Economics
You might also like to view...
If the government sets a maximum price at which a good or service can be sold, it thereby creates
A) a price floor. B) a black market price. C) a price ceiling. D) an illegal price control.
Economics
If good A and good B are substitutes and the price of good A decreases, the demand for good B will
A. not change. B. decrease. C. increase. D. become nonexistent.
Economics