If a Country Is Not Engaged in Trade at All

question 92

Multiple Choice

If a country is not engaged in trade at all with its neighbours,and then begins to trade,it will

• A)experience increases in employment in all industries.
• B)be consuming inside its production possibilities boundary.
• C)import those goods which are acquired more cheaply through trade than through domestic production.
• D)expect a decrease in the average standard of living,but will see increased profits for firms in the export business.
• E)experience an increase in its average standard of living only if it begins with an absolute advantage in the production of all goods.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities and intangible assets, often used as a measure of a company's actual worth.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, as a share of the company’s profits.

Stock Price

The cost of purchasing a share of a company's stock, influenced by various economic, financial, and company-specific factors.

Dividend Income

Income received by shareholders from a company's earnings, distributed proportionally among shares.