Q, The figure above depicts a country that imports good 0 Po Pol [Select] experiences [Select] Do The figure above depicts a country that imports good [Select] D₁ D₂ To in its terms of trade. biased growth and 1₂ and

nternational trade benefits a nation whena. its revenue from selling abroad exceeds itsoutlays from buying abroad.b. its trading partners experience reduced economicwell-being.c. all nations are specializing in producing whatthey do best.d. no domestic jobs are lost because of trade.

If a large nation experiences growth of its abundant input, other things held constant, one would expect that in the post-growth trade equilibrium, a. Its welfare increases not only because of outward shift in the PPF but also because of the more favourable terms of trade.b. Its welfare decreases because of the adverse effects on its terms of trade as well as due to the excess supply of its export good.c. Its welfare increases because of the growth of the input but decreases because of the adverse terms of trade, with the overall effect being uncertain.d. Its welfare will increase.

If a country does not engage in trade with other countries, it is known as a. An open economy. b. A trade deficit economy. c. A closed economy. d. A trade surplus economy.