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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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

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