With Trade,a Country Will Maximize Its Satisfaction When It

question 11

Multiple Choice

With trade,a country will maximize its satisfaction when it:

• A) Moves to the highest possible indifference curve
• B) Forces the marginal rate of substitution to its lowest possible value
• C) Consumes more of both goods than it does in autarky
• D) Finds its marginal rate of substitution exceeding its marginal rate of transformation

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Definitions:

Authorized Shares

Authorized shares are the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.

Reacquired

Refers to the process of a company buying back its own shares or assets which were previously sold or issued.

Outstanding Shares

The total number of shares of stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Outstanding Stock

Issued stock that has not been reacquired but remains in the hands of stockholders.