The Fact That Different Countries Experience Different Standards of Living

question 30

Multiple Choice

The fact that different countries experience different standards of living is largely explained by differences in those countries'

• A)populations.
• B)productivity levels.
• C)locations.
• D)None of the above is correct.Economists are puzzled by differences in standards of living around the world.

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Definitions:

Export Supply Curve

An upward sloping curve that shows the amount of a product that domestic firms will export at each world price that is above the domestic price.

Import Demand Curve

A downsloping curve showing the amount of a product that an economy will import at each world price below the domestic price.

Terms of Trade

The ratio at which a country can trade its exports for imports from other countries, reflecting the relative prices of exports and imports.

Gains from Specialization

The increase in overall production and efficiency that occurs when individuals or entities focus on specific tasks or functions they perform best.