International trade isGroup of answer choicesan "increasing-sum" game at which all players become winners.none of the optionsa "zero-sum" game in which one country benefits at the expense of another country.prone to both countries being worse off than had they not participated in international trade.

An optimal tariff in a large economyGroup of answer choicesalways leads to trade warsleads to an increase in world welfaredoes not affect world welfareleads to a decrease in world welfare

A country like North KoreaGroup of answer choiceslikely rejects the notion of increased opportunity presented by free trade.none of the optionslies on a production possibilities curve superior to South Korea, since North Korea protects its international producers.engages in free trade. PreviousNext

According to the Ricardian model, all countries will gain equally from free trade:Group of answer choicesTrueFalse

When the terms of trade rises Group of answer choices Consumers who prefer foreign goods are better off. The country is unambiguously worse off The price index of import goods increases The relative prices of export goods decrease

International trade makes markets more competitive.