When Opportunity Costs Differ Between Countries

question 24

Multiple Choice

When opportunity costs differ between countries,

• A)only the larger countries will benefit from trade.
• B)each country should produce only those goods for which it has an absolute advantage.
• C)comparative advantages may not exist.
• D)specialization and trade can lead to increases in the production of all commodities.
• E)only the smaller countries will benefit from trade.

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Definitions:

Marketplace Demands

The needs or desires of consumers that drive the supply dynamics in a market.

Nonprofit Organizations

Entities that operate for purposes other than generating profit, focusing on philanthropic, social, educational, or other community-serving objectives.

Marketing Efforts

Activities and campaigns undertaken by a company to promote its products or services and increase its market presence.

Generating Revenue

The process of making money through various activities like sales, services, and other commercial ventures.