Multiple Choice
Which statement is NOT true?
A) If the price of U.S. grain is cheaper than that of Russian grain, and U.S. producers sell cheap grain to Russia, not everyone in Russia will benefit.
B) If the price of U.S. grain is cheaper than that of Russian grain, U.S. producers will have a comparative advantage in grain.
C) If the price of U.S. grain is cheaper than that of Russian grain, then trade between the two countries will depend on the terms of trade.
D) According to the laws of absolute and comparative advantage, trade benefits everyone all the time.
Correct Answer:

Verified
Correct Answer:
Verified
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