Multiple Choice
Which of the following statements is true?
A) Free trade causes contraction of the export-oriented sector.
B) Free trade causes contraction in the import-competing sector.
C) Free trade restricts consumption choices of the domestic consumers.
D) All the domestic producers benefit when a country engages in free trade.
Correct Answer:

Verified
Correct Answer:
Verified
Q31: The following input-requirements data are for
Q32: According to the Stolper-Samuelson theorem, an increase
Q33: Suppose country X is relatively labor abundant
Q34: While China's exports are consistent with the
Q35: The theory which predicts that trade occurs
Q37: The following equations describe the prices and
Q38: Assume the standard trade model with two
Q39: International trade patterns are broadly consistent with
Q40: Explain the weak and the strong forms
Q41: Suppose country A, a labor-abundant country, produces