Question

3. Study Questions #3, Ch 1. What significance does growing economic interdependence have for a country like the United States? Check all that apply. International political and economic events have an increasingly important effect on energy prices in the United States. □ The U.S. agricultural sector increasingly benefits from free trade. Exports and imports increase as a share of national output. Energy prices in the United States grow increasingly independent from the world prices due to international political and economic events Grade It Now Save & Continue Continue without saving

Answer 1

Answer: 1^st and 3^rd options

1^st option: This option is correct. Economic interdependence indicates sharing economic activities between countries. It affects on energy prices, like coal price, crude oil price, etc. Suppose there is a shortage of energy supply in OPEC, which increases energy price in the US.

2^nd option: This is not correct, since agriculture doesn’t depend on free trade benefit. It depends on agricultural facilities (land, labor, weather, etc) within the country.

3^rd option: This is correct, since the comparative advantage of producing goods at lower opportunity cost increases export; otherwise there would be import.

4^th option: This is not correct. Since there is interdependency energy price can’t be independent.