For the United States empirical studies indicate that over the past two hundred years the cost of international transportation relative to the value of U.S imports has ?
Correct answer: B. Decreased
- A. increased
- B. Decreased
- C. Not changed
- D. Any of the above
Explanation
Transport technology and efficiency improved substantially over the long run, so transportation costs fell relative to the value of traded goods. This reduction helped expand international trade.
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