The Impact of Increasing, as Opposed to Constant, Costs Is

question 56

Multiple Choice

The impact of increasing, as opposed to constant, costs is to

• A) intensify and prolong the comparative advantages that any nation may have initially.
• B) expand the limits of the terms of trade.
• C) cause the bases for further specialization to disappear as nations specialize according to comparative advantage.
• D) cause nations to realize economies of scale in those products in which they specialize.

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Definitions:

Brain Injury

Damage to the brain that can result from traumatic impacts, diseases, or disorders, affecting cognitive and physical functioning.

Construal Level Theory

The theory that people focus more on concrete details when thinking about the near future and focus more on abstract meaning when thinking about the distant future.

Distant Future

A point in time that is far ahead from the present moment, often encompassing years or generations ahead.

Near Future

A time period that is shortly ahead, encompassing events that are expected to happen soon but have not yet occurred.