Why Is Trade an Important Source of Economic Progress

question 128

Multiple Choice

Why is trade an important source of economic progress?

• A) It allows the trading partners to produce a larger joint output through specialization in the areas where they have a comparative advantage.
• B) It allows the trading partners to produce a larger joint output as the result of greater realization of cost reductions that accompany the adoption of mass production methods.
• C) It makes it possible to realize gains from the discovery and dissemination of innovative products and production processes.
• D) All of the above are correct.

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Definitions:

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Marshal Pétain

A French military officer and political figure who led France during World War II and headed the Vichy government, collaborating with Nazi Germany.

Anti-Semitic

Showing prejudice or discrimination against Jews, often characterized by harmful stereotypes and hostile behavior.