Which of the following statements is true?
A) If the opportunity costs differ between two countries, there is no opportunity for mutually advantageous trade.
B) International trade leads countries to specialize in the production of those goods for which they have an absolute, rather than a comparative, advantage.
C) Free international trade can increase the availability of all goods and services in the countries that participate in trade.
D) The potential costs of free trade generally outweigh the benefits.
Ans: C) Free international trade can increase the availability of all goods and services in the countries that participate in trade.
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Quotas that entirely eliminate trade in a certain product or a number of products are known as
A) export tariffs. B) deadweight. C) ultimate tariffs. D) embargoes.
The Clayton Act
a. preceded the Sherman Act. b. replaced the Sherman Act. c. strengthened the Sherman Act. d. was specifically designed to reduce the ability of cartels to organize.