If a Country Has the Comparative Advantage in Producing Wooden

question 45

Multiple Choice

If a country has the comparative advantage in producing wooden furniture,then with free trade:

• A)the country will import wooden furniture.
• B)producer surplus in the market for wooden furniture will increase.
• C)consumer surplus in the market for wooden furniture will increase.
• D)the domestic quantity supplied will be less than the domestic quantity demanded.

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Definitions:

Mergers and Acquisitions

Business strategies involving the consolidation (merger) of companies or the purchase (acquisition) of one company by another to strengthen market position.

Company Growth

The increase in the size, output, or market share of a corporation over time.

Planning Improves

The process of making plans helps to enhance effectiveness and efficiency by providing direction and reducing uncertainty.

Action Orientation

A personality trait or behavior characterized by proactive decision-making and initiative-taking in facing tasks or challenges.