A Country That Engages in No Foreign Trade Is Said

question 60

Multiple Choice

A country that engages in no foreign trade is said to be in a situation of

• A)absolute advantage.
• B)comparative advantage.
• C)autarky.
• D)reciprocal absolute advantage.
• E)isolation.

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Definitions:

Always Decrease

A scenario where a variable or condition consistently declines over a period of time without increasing.

Marginal Cost

The cost associated with producing one additional unit of a product, emphasizing the incremental expense in production processes.

Additional Unit

The next unit of product or service that is being considered for production or consumption.

Marginal Cost

Incremental expense incurred from the production of one additional unit of a good.