Suppose That International Trade Results in an Outward Shift in a Country's

question 209

Multiple Choice

Suppose that international trade results in an outward shift in a country's production possibilities frontier.This would be described as

• A) dynamic gains from trade.
• B) static gains from trade.
• C) protectionist gains from trade.
• D) allocative gains from trade.

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Definitions:

Production

The method of producing products and services by merging work, materials, and technology.

Theoretical Standards

These are rigorous, often idealized cost and efficiency standards based on perfect operating conditions, used for comparison and performance analysis.

Ideal Standards

Benchmarks used in managerial accounting that represent optimal levels of performance under perfect operating conditions.

Normal Standards

Benchmarks or norms established for a business process or operation that are considered to be a typical or expected level of performance.