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:

Felony

A serious criminal offense, typically punishable by imprisonment for more than one year or by death.

Capital Offense

A crime punishable by death or life imprisonment, typically reserved for the most serious offences like murder or treason.

Maximum Penalty

The most severe punishment that can be imposed for a particular offence by a court of law.

Life Imprisonment

A sentence of imprisonment for a crime where the convicted person is to remain in prison for the rest of their life.