The Expansion of World Output as a Result of Trade

question 103

Multiple Choice

The expansion of world output as a result of trade is mainly due to the effects of

• A)Higher trade barriers.
• B)Improved terms of trade.
• C)Specialization according to comparative advantage.
• D)Specialization according to absolute advantage.

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Definitions:

Psychological Factor

Represents the mental and emotional influences that affect consumer behaviors and decision-making processes.

Functional Need

A consumer's requirement for a specific feature or function that a product or service must fulfill to be considered useful.

Lifestyle

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.

Cognitive Component

A component of attitude that reflects what a person believes to be true.