题目内容

Continue with the above question, both countries would benefit if ( ).

A. Sweden produced both commodities and did not trade with the
B. the United States exported candy and imported flowers.
C. the United States exported flowers and imported candy.
D. S. produced both commodities and did not trade with Sweden.
E. S.

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The terms of trade effect of a tariff refers to the fact that a small country can benefit by levying a tariff.

Suppose that Mexico eliminates its tariff on textile imports, textile prices to Mexico consumers would be expected to decrease.

Compare the welfare effects of a tariff of the same size in a small country and a large country, the total dead-weight loss in the large country is less than in the small country.

Continue with question 1, if the demands of commodity of X and Y and the technology in producing X and Y are the same in nation 1 and nation 2 before trde, the wage in nation 1 is ( ) than that in nation 2.

A. higher
B. lower
C. same