A Firm That Conducts a Significant Portion of Its Business

question 22

Multiple Choice

A firm that conducts a significant portion of its business abroad, that has some facilities overseas, and that imports a significant portion of goods from other countries is best described as

• A) an importer.
• B) an international firm.
• C) mininational.
• D) an exporter.
• E) a multinational firm.

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Definitions:

Production Possibilities

Production possibilities refer to the different combinations of goods and services that an economy can produce given its available resources and technology.

Specialization

The process of focusing effort and resources on a limited number of activities to increase efficiency and productivity.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level, holding all other factors constant.

Quantity Supplied

The total amount of a product that producers are willing to sell at a given price within a specific time frame.