If a Nation Restricts Trade with Other Nations, Then the Most

question 114

Multiple Choice

If a nation restricts trade with other nations, then the most likely effect is

• A) lower prices of goods and services in the nation.
• B) increased specialization of production.
• C) expanded economic wealth of the nation.
• D) consumers in the nation are made worse off.

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Definitions:

Factor Of Production

An economic term describing the inputs used in the production of goods or services to earn an income, namely labor, capital, land, and entrepreneurship.

Marginal Productivity Theory

A theory stating that the demand for a factor of production is derived from the marginal product that the factor adds to the output.

Equilibrium Value

The price and quantity at which supply and demand in a market are balanced.

Marginal Product

The increase in output that results from employing one more unit of a particular input, holding all other inputs constant.