A Country Will Be Able to Consume a Combination of Goods

question 44

Multiple Choice

A country will be able to consume a combination of goods that is not attainable solely from domestic production if

• A) the world terms of trade differ from its domestic relative costs.
• B) the country specializes in one product.
• C) the country avoids international trade.
• D) the world terms of trade equal the domestic relative costs.
• E) the country's domestic production value equals world relative value.

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Definitions:

Total Utility

The overall satisfaction a consumer receives from consuming a particular quantity of goods or services.

Marginal Utility

The additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service.

Purchases Shift

A change in the buying behavior of consumers, often referring to a movement in demand for goods or services in the market.

Utility Change

refers to changes in the level of satisfaction or happiness that a consumer derives from consuming goods or services, indicating shifts in preferences or economic circumstances.