Figure 9-17 -Refer to Figure 9-17.When Comparing No Trade to Free Trade,the

question 215

Multiple Choice

Figure 9-17
-Refer to Figure 9-17.When comparing no trade to free trade,the gains from trade amount to

• A)$400.
• B)$600.
• C)$750.
• D)$1,000.

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Definitions:

Equilibrium

A state in a market where supply equals demand, meaning that there is no tendency for the market price to change unless external factors alter supply or demand.

Specializing

The process by which individuals, businesses, or countries focus on producing a limited range of goods or services, to gain a competitive advantage in terms of efficiency, quality, or cost.

Specialization

Refers to the process by which individuals, firms, or countries focus on producing a limited range of goods or services to achieve greater efficiencies.

Economic Output

The total value of all goods and services produced within an economy over a specific period.