When Specialization According to Comparative Advantage Also Makes Economies of Scale

question 49

Multiple Choice

When specialization according to comparative advantage also makes economies of scale possible,

• A)costs will rise in all trading countries.
• B)trade is not beneficial to the country that has the absolute advantage in both goods.
• C)it will be beneficial for all trading countries to impose tariffs.
• D)the production possibilities boundaries of all trading countries will shift inward.
• E)there will be additional gains from trade.

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Definitions:

Forecast Value

A predicted numerical value that represents the expected outcome of a variable of interest in future periods, based on past and current data trends.

Weighted Moving Average

A calculated average of data points where different data points are given different weights, often used in technical analysis to smooth out price data.

Three-period

Pertains typically to a moving average or other statistical calculation considering data from three specific time periods for analysis or forecasting.

Weightage

Weightage refers to the assigned importance or value given to elements within a calculation or process, influencing the overall outcome.