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:

Central Nervous

Refers to the central nervous system, which includes the brain and spinal cord, responsible for processing and transmitting neural signals.

Autonomic

Pertaining to the part of the nervous system that controls involuntary actions of the body, such as heartbeat and digestion.

Autonomic Nervous System

is a part of the nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.

Sensory Nervous System

The part of the nervous system that processes input from sensory organs, enabling the perception of sight, sound, touch, taste, and smell.