In the Past 20 Years, the Benefits of International Diversification

question 53

Multiple Choice

In the past 20 years, the benefits of international diversification have:

• A) increased.
• B) decreased.
• C) disappeared.
• D) become more volatile.

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Definitions:

External Costs

Costs of economic activities that are not borne by the individuals or enterprises involved in the transaction but are instead imposed on third parties or society at large, such as pollution.

Market Supply Curve

A graphical representation showing the total quantity of a good that producers are willing to sell at various price levels in a given market.

Optimal Allocation

The most efficient distribution of resources and production that maximizes the benefits or profits within an economy or specific market.

Government Intervention

Regulatory actions taken by a government to affect or influence a specific sector of its economy, often to correct market failures or promote social welfare.