If Two Countries Each Are Currently Producing Two Goods, and Each

question 204

Multiple Choice

If two countries each are currently producing two goods, and each begins to specialize in the good in which it has a comparative advantage, what will happen to total (world) output?

• A)It will increase.
• B)It will decrease.
• C)It will be unchanged in both countries.
• D)It will rise in one country and fall in the other, but the total is unchanged.
• E)Uncertain; economic theory has no answer to this question.

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Definitions:

Brand Recognition

The extent to which the general public is able to identify a brand by its attributes, such as logo, jingle, packaging, or advertising.

Brand Preference

The inclination of consumers to choose a particular brand over others, influenced by past experiences, advertising, and perceptions of quality.

Marketing Intermediaries

Organizations or individuals that act as a middleman in the distribution process between producers and consumers.