In the Diagram in Question #9 Above, If Restrictions on Capital

question 28

Multiple Choice

In the diagram in Question #9 above, if restrictions on capital flows were removed and Capital was allowed to flow from the low-return country to the high-return country, then Total output in country II would rise by area __________.

• A) 0'r'₃AK₁
• B) K₁AEK₂
• C) K₁FEK₂
• D) K₁GEK₂

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Definitions:

Limited-Function Merchant Wholesaler

A wholesaler that offers a narrower range of services than full-service wholesalers, typically specializing in only certain kinds of products or functions.

Merchant Wholesaler

A type of intermediary that buys goods in bulk from manufacturers or producers and sells them in smaller quantities to retailers or other businesses.

Warehouse Club

A membership-based retail store offering a wide variety of merchandise, often in bulk and at lower prices than conventional retailers.

Selective Distribution

Distribution strategy in which a manufacturer selects only a limited number of retailers to distribute its product lines.