If a country has lower overall productivity levels than its trading partners, then it will
A) be unable to export.
B) have a trade deficit.
C) not be able to obtain gains from trade.
D) have a lower standard of living than its trading partners.
D
You might also like to view...
"A single-price monopoly charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
One reason for the success that firms have in getting the government to erect and maintain barriers to foreign competition is members of Congress who engage in logrolling, where members in districts with protected industries
A) agree to trade votes on issues that concern other members in order to uphold tariffs. B) are permitted to not only cast their own votes but also cast votes for other Congressional members in their home state with respect to any bills involving the protected industry. C) are legally allowed to give cash payments to other members of Congress to secure their support for the protected industry. D) can bypass presidential approval of a bill involving the protected industry and have members of Congress directly sign the bill into law.