Consider the Following Statement: "Canada Is Unambiguously Better Off If

Multiple Choice

Consider the following statement: "Canada is unambiguously better off if it is exporting more,in dollar value,to the rest of the world than it is importing." This statement is ________ because ________.

A) correct; exports are good and imports are bad
B) correct; it is based on the mercantilist doctrine
C) incorrect; it fails to recognize that the gains from trade come from the volume rather than the balance of trade
D) incorrect; it does not recognize the operation of the foreign-exchange market
E) incorrect; imports improve Canada's terms of trade