All of the Following Are Sources of Dynamic Gains from Trade

question 162

Multiple Choice

All of the following are sources of dynamic gains from trade EXCEPT

• A) specialization and the reallocation of existing resources.
• B) additional savings and investment that occurs over a period of time.
• C) economies of large-scale production.
• D) economic stimulus provided by increasing levels of competition.

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Definitions:

Significant Influence

The capacity of an investor to participate in the financial and operating policy decisions of an investee, but not control them.

Transactions

Transactions refer to the exchange of goods, services, or funds between two or more parties, forming the basis of business activities and financial operations.

Investee

A company or entity in which an investor holds a significant interest, but not majority control.

Gross Profit

The financial metric obtained by deducting the cost of goods sold from revenue, indicating the efficiency of a company in managing its labor and supplies in the production process.