The Increases in a Nation's Output and Consumption That Result

question 89

Multiple Choice

The increases in a nation's output and consumption that result from specialization and trade are called

• A)the terms of trade.
• B)the gains from trade.
• C)autarky.
• D)absolute advantage.
• E)comparative advantage.

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Definitions:

Economic Development

The method through which a country enhances its citizens' economic, political, and social conditions.

Limited Partnership

A business arrangement where one or more partners are liable only up to the amount of their investment, while at least one partner has unlimited liability.

Perpetual Life

The concept that an entity, usually a corporation, continues to exist indefinitely until it is legally dissolved, regardless of changes in ownership or management.

Limited Liability

A legal structure where a company's owners are protected from losing more money than they have invested in the company.