Which of the Following Statements Is Correct

question 23

Multiple Choice

Which of the following statements is correct?

• A) Globalization is a natural consequence of comparative advantage.
• B) In the short-run, all individuals bene?t from international trade.
• C) Two countries can never trade the same good.
• D) Self-su?ciency is an easier way of increasing the real income levels of a

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Definitions:

Corrective Taxes

Taxes designed to encourage or discourage certain behaviors among consumers or producers, often used to correct the effects of a negative externality.

Coase Theorem

The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own

Distribution Of Rights

The allocation of legal entitlements and responsibilities among individuals, organizations, or governments.

Efficient Outcome

An economic situation in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.