International Trade Is Driven by ________

question 107

Multiple Choice

International trade is driven by ________.

• A) absolute advantage in the consumption of goods and services
• B) absolute advantage in the production of goods and services
• C) comparative advantage in the production of goods and services
• D) comparative advantage in the consumption of goods and services

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Definitions:

Total Revenue

The total amount of money a firm receives from sales of its goods or services.

Price Elasticity

A measure of how the quantity demanded of a good or service changes in response to a change in its price.

Equation

A mathematical statement that asserts the equality of two expressions, often used to solve problems and express relationships in various fields.

Cross Price Elasticity

An indicator of the sensitivity of the demand for one product in relation to the price variations of a different product.