The Dynamic Gains from Trade Include All of the Following

question 99

Multiple Choice

The dynamic gains from trade include all of the following EXCEPT

• A) economies of large-scale production resulting in decreasing unit cost.
• B) increased saving and investment resulting in economic growth.
• C) increased competition resulting in lower prices and wider range of output.
• D) increasing comparative advantage leading to specialization.

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Definitions:

Bushels

A measure of volume that is used for quantities of grain, fruit, or other produce.

Variable Input

Variable input refers to a production factor that can be adjusted in the short term to increase or decrease production output.

Short Run

A period during which at least one of a firm's inputs is fixed, limiting its capacity to adjust fully to changes in market demand.

Short Run

A time period in economics during which at least one factor of production is considered fixed, limiting the ability of the economy or firm to adjust to changes.