When Two Countries Are Specializing and Trading with Each Other,the

question 130

Multiple Choice

When two countries are specializing and trading with each other,the gains from trade will tend to be greater when

• A)opportunity costs in the two countries are similar.
• B)there are economies of scale in production.
• C)prices rise in both countries.
• D)the production possibilities boundaries shift inward.
• E)comparative advantages are eliminated.

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Definitions:

Consciously Distorting

The intentional manipulation or alteration of perception or information.

Unconsciously Distorting

Altering perceptions, memories, or data without conscious awareness, often to align with personal beliefs or desires.

Collectivism

A cultural value that emphasizes the importance of groups and collective well-being over individual achievement or desires.

Introversion

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation, often involving a preference for solitude or small group interactions.