Which of the Following Statements Is True of International Trade

question 15

Multiple Choice

Which of the following statements is true of international trade?

• A) It discourages workers from specializing in production.
• B) It creates supply bottlenecks.
• C) It leads to an inefficient allocation of resources.
• D) It allows people to choose occupations that suit their talents.

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Definitions:

Literary Work

A work of fiction or nonfiction, published or unpublished, that exists in written or printed form, or in electronic media.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss of value due to wear and tear, and obsolescence.

Plant Asset

Permanent real assets employed for creating products and offering services, like facilities, mechanical devices, and apparatus.

Market Value

The immediate cost set for assets or services to be exchanged in a market setting.