Countries Gain from Trade by Producing

question 49

Multiple Choice

Countries gain from trade by producing:

• A) the goods they produce at the highest opportunity cost.
• B) the goods they can produce at the lowest opportunity cost.
• C) where the production possibility curve has a slope of -1.
• D) all goods in equal amounts.

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Definitions:

Payments

Amounts of money transferred from one party to another as fulfillment of financial or contractual obligations.

Compounded Annually

Interest on an investment that is calculated once a year on the principle plus any previously earned interest.

Individual Retirement Account

A retirement savings plan that offers tax advantages for individuals to allocate funds for their retirement.

Invest

To allocate money in the expectation of some benefit in the future.