Intra-Industry Trade Can Be Explained in Part By

question 48

Multiple Choice

Intra-industry trade can be explained in part by:

• A) Adam Smith's principle of absolute advantage
• B) Perfect competition in product markets
• C) Diseconomies of large scale production
• D) Transportation costs between and within nations

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Definitions:

Money

A medium of exchange that facilitates transactions, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.

Stock of Money

The total quantity of money available in the economy at a particular time, including cash and deposits.

Price Level

A measure of prices in a given month or year in relation to prices in a base year.

Medium of Exchange

A mechanism or item used to facilitate trade by avoiding the limitations of barter, such as currency or digital forms of money.