Which of the Following Is True

question 149

Multiple Choice

Which of the following is true?

• A) Competition from abroad fails to provide domestic producers with a strong incentive to improve the quality of their products and keep their costs low.
• B) When economies of scale are important in an industry, international trade benefits domestic consumers but harms domestic producers.
• C) When economies of scale are important in an industry, international trade will be particularly important for domestic producers operating in small countries.
• D) Economies of scale eliminate the potential gains from international trade.

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Definitions:

Ownership Interest

A legal or equitable claim in property, providing the holder with certain rights, such as use, enjoyment, and control.

Adverse Possession

Adverse possession is a legal principle under which a person who occupies someone else's land for an extended period, meeting certain requirements, may acquire legal ownership of that land without compensation.

Owner's Permission

Authorization granted by the owner for someone else to use or manage their property or assets.

Quitclaim Deed

A legal document transferring a grantor's interest in a property without making any guarantee of clear title.