International Trade Tends to Be Complete, Rather Than Partial, When

question 71

Multiple Choice

International trade tends to be complete, rather than partial, when which of the following occurs?

• A) constant opportunity cost
• B) increasing opportunity cost
• C) negative opportunity cost
• D) positive opportunity cost

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Definitions:

Total Utility

Total utility is the total satisfaction or benefit that a consumer derives from consuming a specific quantity of a good or service.

Indifference Curves

A graphical representation that shows a combination of two goods or services that gives a consumer equal satisfaction and utility.

Intersect

The point at which two or more lines or paths cross each other.

Substitution Effect

The change in consumption of goods that occurs when a price change for one good makes another good more or less attractive as a substitute.