Which of the following is(are) the effect(s) of an international trade agreement that provides an incentive and reward for nations NOT to impose tariffs?
I. an increase in world welfare and standard of living
II. an opportunity for low-income nations to exploit the gains from trade.
III. an opportunity for large countries to improve their terms of trade
a. I
b. I and II
c. I and III
d. I, II, and III
Ans: b. I and II
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In response to the financial crisis in 2008, the Fed created which of the following policy tools?
A) quantitative easing B) the required reserve ratio C) the discount rate D) the federal funds rate E) open market operations
The magnitude of the slope of the budget line is equal to the ________ or ________ of the good plotted on the ________ in terms of the other good
A) relative price; marginal cost; y-axis B) relative price; total cost; y-axis C) relative price; opportunity cost; x-axis D) price; opportunity cost; x-axis