Question

Which of the following statements is? true? A. A trade deficit with another country is not...

Which of the following statements is? true?

A. A trade deficit with another country is not usually bad if it is balanced out by capital inflows.

B. A trade deficit with another country is not good for an economy as trade is a? zero-sum game.

C. In the presence of national? redistribution, trade reaps no benefit to an economy.

Under which of the following scenarios is a trade deficit likely to be bad for an? economy?

A. When a trade deficit leads to lower dependency on imported goods

B. When the gains from trade are distributed equally in an economy

C. When a trade deficit allows an economy to import capital goods to improve productivity capacity

D. When there is a lack of national redistribution policy in an economy

0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Which of the following statements is? true? A. A trade deficit with another country is not...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Which of the following statements is true? a. A country that imports a substantial amount of...

    Which of the following statements is true? a. A country that imports a substantial amount of goods and services would enjoy a higher standard of living if it reduced its imports of goods and services. b.Free trade allows a country to specialize in the production of what it produces best, increasing both its production of goods and services and its living standard. c. In the long run, a country’s production of goods and services and the standard of living of...

  • 6. The balance of payments is ..-(A) negative when the nation runs a trade deficit. (B)...

    6. The balance of payments is ..-(A) negative when the nation runs a trade deficit. (B) positive when the nation runs a trade surplus. (C) negative when the country is a borrower in the international apital market. (D) positive when the country is a lender in the international capital market. (E) always equal to zero. 7. If the U.S. dollar increases in value relative to the British pound, (A) U.S. wheat will become cheaper in England. (3) British bicycles will...

  • Which of the following statements is true of government intervention in international trade? Group of answer...

    Which of the following statements is true of government intervention in international trade? Group of answer choices A.Rich countries never engage in any form of government intervention. B.Government intervention is intended to increase the movement of citizens to a foreign country. C.Government intervention usually aims to protect foreign suppliers. D.Government intervention is often used when national security is likely to be involved.

  • Which of the following statements corresponds to a trade barrior? Most economists agree this is not...

    Which of the following statements corresponds to a trade barrior? Most economists agree this is not a good idea when the economy is at full employment When unemployment is low, the opportunity cost of production becomes zero because resources are available that are otherwise not being utilized In this situation, a country must give up the chance to produce one good for another Mutual gains from this assume full employment Save and Continue DAHA repistered trademark of SOPHIA Learning LLC

  • Assume a standard trade model. Which of the following statements is NOT true? a) At the...

    Assume a standard trade model. Which of the following statements is NOT true? a) At the optimal output mix, the slope of the production possibility frontier equals the negative relative price. b) If the economy produces more of one good, it has to produce less of the other good. c) The production possibility frontier is convex. d) The optimal output mix is realized where the isovalue line is tangent to the production possibility frontier. Assume a firm faces the following...

  • Please solve the final answer for all following 10 multiple choice questions Which argument does not refer to Preferential Trade Agreements (PTAs)? O PTA reduces trade barriers among members but dis...

    Please solve the final answer for all following 10 multiple choice questions Which argument does not refer to Preferential Trade Agreements (PTAs)? O PTA reduces trade barriers among members but discriminate against non-member countries O PTA promotes regionalism and is as such against the idea of multilateralism in trade O Some people view that the formation of regional trade agreements (RTAs) undermine the WTO O PTA encourages regionalism and it is harmful since it leads to trade diversion O All...

  • 2. trade surplus 3. import quota 4. intra-industry trade 5. factor intensity 6. producer surplus II....

    2. trade surplus 3. import quota 4. intra-industry trade 5. factor intensity 6. producer surplus II. TRUE OR FALSE? (20%) 1, A production possibilities frontier graphically represents the maximum output of a country when the supply of resources and technology are constant.() 2. Absolute advantage theory shows that two nations could both gain from trade by exporting products in which their labor productivity was higher than that of the other nation. () 3, Mercantilists believed that each nation should try...

  • Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between...

    Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...

  • 3. welfare effects of tariff in small country Suppose Bolivia is open to free trade in...

    3. welfare effects of tariff in small country Suppose Bolivia is open to free trade in the world market for wheat. Because of Bolivia's small size, the demand for and supply of wheat in Bolivia do not affect the world price. The following graph shows the domestic wheat market in Bolivia. The world price of wheat is P $250 per ton. On the folowing graph, use the green triangle (triangle symbols)to shade the area representing consumer surplus (CS) when the...

  • Question 24 This question has two parts: A and B A. Many countries design and implement...

    Question 24 This question has two parts: A and B A. Many countries design and implement a trade policy when dealing with import of goods and services from foreign markets. Explain why some countries would want to restrict imports and suggest how these countries implement restrictions of imports (6 marks) B. Country X is a small island open economy. National income details are calculated as follows: Consumption expenditure (0)5300. Government expenditure (G) $250. Investment spending 00 $350. exports $15000 and...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT