Advanced Questions

1:

Given free trade, small nations tend to benefit the most from trade since they

A.

Are more productive than their large trading partners.

B.

Are less productive than their large trading partners.

C.

Have demand preferences and income levels lower than their large trading partners.

D.

Realize terms of trade lying near the MRTs of their large trading partners.

 

Answer : D

Explanation :

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Option: A

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