Why Is a Small Country More Likely to Gain from International

question 71

Multiple Choice

Why is a small country more likely to gain from international trade than a large country?

• A) Because autarkic relative prices in a small country are likely to be quite different from the world relative prices.
• B) Because a small country,unlike a large country,does not have the resources it needs to be self-sufficient.
• C) Because small countries tend to be specialized in their production,while large countries tend to be diversified.
• D) Because a small country is less likely to encounter decreasing returns to scale than is a large country.

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Definitions:

Secondary Data

Secondary data refers to information that has been collected previously by someone else for a different purpose but can be utilized for a new research project or analysis.

Primary Data

Data collected firsthand for a specific research purpose, involving direct interaction with the study subjects through surveys, interviews, or experiments.

Time-Consuming

Requiring a significant amount of time to complete, often more than what is considered desirable or efficient.

Costly

Involving great expense; something that requires a high amount of money or resources.