International Trade Occurs Because the Opportunity Cost of Producing Specific

question 136

Multiple Choice

International trade occurs because the opportunity cost of producing specific goods differs across

• A)firms
• B)individuals
• C)regions of the U.S.
• D)countries
• E)households

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Definitions:

Monopsonist

A market condition where there is only one buyer for many sellers, giving the buyer significant power over prices and terms.

Nonunion Labor Force

Employees who are not members of a labor union and do not have negotiated contracts concerning their wages, benefits, and working conditions.

Monopsonist

A market condition in which a single buyer substantially controls the market as the major purchaser of goods and services.

Profit-Maximizing Quantities

The level of output at which a firm maximizes its profit, determined by the point where marginal cost equals marginal revenue.