If Nations Begin to Specialize in Production for the Purpose

question 192

Multiple Choice

If nations begin to specialize in production for the purpose of trade,

• A)the utility from consumption will increase, but not the total output.
• B)total world output will increase, as well as well-being from consumption.
• C)total world output will increase, but well-being from consumption will not.
• D)neither total output nor well-being from consumption will change.
• E)the impact on total output and well-being cannot be predicted.

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Definitions:

Recovered

Refers to the process of regaining or securing an amount of money, property, or other resource that was previously lost or owed.

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, taxes, and costs involved in sustaining the activity.

Discounted Cash-flow Analysis

A financial model that estimates the value of an investment based on its expected future cash flows, discounted back to their present value.

Debts

Money that is owed or due, typically resulting from borrowing funds or purchasing goods and services on credit.