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A)

Which statement is true? Trade allows for people to consume an increased variety of goods. Trade forces each country to re-invent the same ideas. Trade monopolizes markets. 99.65 Trade almost never works because of diseconomies of scale. Suppose that the world price of SPAM is greater than the autarky price of that SPAM in England. If England has free trade, it will... " a. Have a comparative advantage in producing something else and import SPAM. " b. Have a comparative advantage in producing something else and export SPAM. " c. Have a comparative advantage in producing SPAM and import SPAM. d. Have a comparative advantage in producing SPAM and export SPAM. Which statement is true? A tariff will increase gains from trade while an import quota will not. An import quota does not have deadweight loss while a tariff does. A tariff does not have deadweight loss while an import quota does. 31.0575 A tariff and an import quota will have the same effect on the economy, only the quota does not raise tax revenue. Which of the following will be true when a country opens to free trade and imports a good? Statement |) Consumer surplus will rise. Statement II) Producer surplus will fall. Both statements are true. Statement | is false but Statement II is true. Both statements are false. 995?! Statement | is true but Statement II is false. Which of the following will be true when a country opens to free trade and exports a good? Statement l) Producer surplus will rise. Statement ll) Gains from trade will fall. Statement l is false but Statement II is true. Both statements are false. Both statements are true. 99.65 Statement l is true but Statement II is false