-The Data in the Above Table Demonstrates That Gains from Trade

question 417

Multiple Choice

-The data in the above table demonstrates that gains from trade can be captured if

• A) the United States produced both goods.
• B) the United States produced steel in exchange for concrete produced in France.
• C) the United States produced concrete in exchange for steel produced in France.
• D) each country became self-sufficient, produced both goods for itself, and did not engage in trade.

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Definitions:

Differential Cost

The difference in total cost that will result from selecting one choice over another.

Additional Cost

Expenses incurred that are above and beyond the initial forecast or budget for a project or product.

Differential Revenue

The difference in revenue generated under two different scenarios or as a result of a specific action.

Additional Cost

Expenses incurred that are over and above the originally planned or estimated costs.