Which is the most accurate statement about trade?
a. Trade can make every nation better off.
b. Trade makes some nations better off and others worse off.
c. Trading for a good can make a nation better off only if the nation cannot produce that good itself.
d. Trade helps rich nations and hurts poor nations.
Answer: A
Macroeconomics
- Suppose that a worker in Radioland can produce either 4 radios or 1 television per year, and a worker in Teeveeland can produce either 2 radios or 4 televisions per year. Each nation has 100 workers. Also suppose that each country completely specializes in producing the good for which it has a comparative advantage. If Radioland trades 100 radios to Teeveeland in exchange for 100 televisions each year, then each country's maximum consumption of new radios and televisions per year will be
- Economists generally support
- A good that is produce abroad and sold domestically is called
- When a country has a comparative advantage in producing a certain good,
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- The difference between production possibilities frontiers that are bowed out and those that are straight lines is that
- Without trade,
- Consider a shoemaker and a vegetable farmer. Potentially, trade could benefit both individuals if
- Economists regard events from the past as
- When a relevant variable that is not named on either axis changes,
- When two variables have a negative correlation,
- The slope of a line is calculated by the
- The slope of a straight line is calculated by
- You know an economist has crossed the line from scientist to policy adviser when he or she
- Which of the following is an example of a normative statement?
- Which of these statements is a normative statement (as opposed to a positive statement)?
- Which of the following is an example of a positive statement?
- Economists consider normative statements to be
- A normative statement describes how the world
- Which is the best statement about the roles of economists?