Preferential trading agreements can improve people's welfare if: a. efficiency loss exceeds terms of trade gain b. trade creation exceeds trade diversion c. trade diversion exceeds trade creation d. terms of trade gain exceed efficiency loss

answer the questions using 3 step approach 6. Marla and Mirah are twin sisters living with their parents. Their father Erikson is trying to share house duties between the twobefore he leaves for vacation. Marla can use 6 hours to wash the clothes and 12 hours to cook. Mirah can take 3 hours to washand 9 hours to cook. Who should wash and who should cook. Explain 7. What happens to the domestic market when suppliers start to gain comparative advantage and export cars. Who enjoys the economic surplus and who lose their share of the surplus?

Trade between two countries, increaces the price difference between the two. a.False b. True

The agreement is in the form of free trade between members and requires uniform external trade policies for non-member countriesa. Custom unionb. Most favorite nationc. Preferential Trading Agreementd. Free trade area