Multiple Choice
If good A costs $10 per unit in country A and $12 per unit in country B, and if transport costs between A and B for the good are $3 per unit, an economist would say that
A) the good will be exported from A to B.
B) the good will be exported from B to A.
C) intra-industry trade will occur in the good.
D) the good will be a "nontraded good."
Correct Answer:

Verified
Correct Answer:
Verified
Q12: It has been argued that the effect
Q13: Explain how relative factor abundance can determine
Q14: Which one of the following is NOT
Q15: If a commodity is classified as "labor-intensive"
Q16: (a) Assume a two-country world with two
Q18: If skilled labor is physically more abundant
Q19: Domestic pressures for trade protection appear to
Q20: Suppose that a firm is maximizing profit
Q21: If relatively capital-abundant country A opens trade
Q22: Which one of the following is NOT