If the Nation of Alphania Enjoys an Increase in Consumption

question 28

Multiple Choice

If the nation of Alphania enjoys an increase in consumption as a result of specialization and trade, then it can be concluded that:

• A) it has no trade barriers in any sector.
• B) it has a comparative advantage in the production of all goods.
• C) the country has a high level of inflation.
• D) it has experienced the gains from trade.

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Definitions:

Declaration of Independence

A historic document adopted by the Second Continental Congress in 1776, proclaiming the thirteen American colonies' separation from British rule and outlining their rights and principles as a sovereign nation.

Common Sense

A pamphlet written by Thomas Paine in 1776 advocating for the independence of the American colonies from Britain.

Authority to Tax

The legal and constitutional power granted to government entities to collect tariffs, duties, and taxes from individuals or organizations.

Elected Representative

An individual chosen through elections to act or speak on behalf of a larger group in a legislative or governmental capacity.