If Two Countries Begin Trade and Both Produce a Product

question 32

Multiple Choice

If two countries begin trade and both produce a product subject to external economies of scale, then the country with the ________ rate of production will ________ production until it controls ________ of the market.

• A) higher; increase; 100%
• B) higher; increase; 50%
• C) lower; increase; 100%
• D) lower; increase; 50%
• E) higher; decrease; 0%

Differentiate between a decrease in demand and a decrease in quantity demanded.

Calculate the total market quantity demanded with given individual demands.

Identify factors leading to shifts in the demand curve.

Analyze the impact of changes in the prices of substitutes and complements on demand.

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Definitions:

Right Choice

Refers to making a decision that best suits one's needs, goals, values, or circumstances, often after careful consideration.

Attend College

The act of enrolling in and participating in courses at a college or university.

Purpose

The reason for which something is done or created, or the reason for an object's existence.

Goal Setting

The practice of identifying and outlining personal or professional targets and planning steps to achieve them.