Since Production Has Shifted to More Efficient Producers Due to Comparative

question 8

Multiple Choice

Since production has shifted to more efficient producers due to comparative advantage, consumers in Country X have had access to more goods at lower prices.Which of the following most likely exists?

• A)trade specialization
• B)trade diversion
• C)trade creation
• D)trade internalization

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Definitions:

Private Sector

The part of the economy that is run by individuals and companies for profit and is not under direct state control.

Public Sector

The part of the economy composed of government services and enterprises, including infrastructure, education, and healthcare services.

Labor Productivity

refers to the amount of goods and services produced by one hour of labor.

Developing Nations

Countries that are in the process of industrialization and have lower levels of material well-being compared to developed economies.