Which of the Statements About the Gains from International Trade

question 94

Multiple Choice

Which of the statements about the gains from international trade is correct?

• A) Everyone gains from international trade.
• B) Some people gain from international trade and some lose, though overall the gains exceed the losses.
• C) Some people gain from international trade and some lose; overall the gains exceed the losses.
• D) Everyone loses from international trade.

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Definitions:

Operate

To conduct the affairs of a business or other organization; to function or be active.

Shut Down

A short-term decision by a firm to cease production temporarily due to unfavorable market conditions.

MC = MR

This refers to the point where Marginal Cost equals Marginal Revenue, often used as a condition for profit maximization in economic theory.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the total financial gain of a business beyond breaking even.