Multiple Choice
Two areas, Europe and America, can produce only goods A and B, under constant costs as indicated below.What will be the result of free trade between the two areas (assuming no transportation costs) ?
A) Europe will export A and B to America.
B) Europe will import A and export B.
C) Europe will import B and export A.
D) Europe will import A and B from America.
E) No trade will take place.
Correct Answer:

Verified
Correct Answer:
Verified
Q57: Assume that the two nations described below
Q58: Each person in Country X can produce
Q59: In the long run, a tariff can
Q60: Which of the following are some important
Q61: It is only common sense that countries
Q63: If the ratio of clothing price to
Q64: The benefits of trade based on comparative
Q65: Quotas always create higher efficiency costs than
Q66: Trade restrictions do not necessarily force a
Q67: Under international free trade, countries shift production