Even If There Are Big Gains to Be Had from Specialization

question 23

Multiple Choice

Even if there are big gains to be had from specialization and trade, countries generally don't produce only one good because:

• A)national economies often are perfectly free markets.
• B)there is perfectly free trade between national economies.
• C)specialization is commonly limited by trade agreements.
• D)All of these are true.

---

Definitions:

Par Value

A nominal or face value assigned to a share of stock by the company's charter, which has little bearing on its market value.

Shares

Units of ownership in a company, representing a portion of the corporation's capital, often traded on stock exchanges.

Treasury Shares

Shares that were once part of the float and outstanding shares but were subsequently bought back by the issuing company, reducing the amount of stock on the open market.

Common Stock

Equity ownership in a corporation, with privileges that may include voting rights and a share in profits through dividends and capital appreciation.