If There Is Trade, Which of the Following Is Most

question 43

Multiple Choice

If there is trade, which of the following is most likely?

• A) A country is worse off because it becomes dependent on other countries.
• B) A country will produce a greater variety of goods and services to trade.
• C) A country's consumption possibilities frontier can be outside its production possibilities frontier.
• D) A country will experience a lower unemployment rate.

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Definitions:

Long Run

A period in economics during which all factors of production and costs are variable, allowing firms to adjust all inputs.

Deli

A short form for delicatessen, which is a store or counter specializing in prepared foods, sandwiches, and specialty groceries.

Zero Economic Profits

A condition in perfect competition where firms earn just enough revenue to cover their total costs, leading to no supernormal profit in the long term.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for significant brand differentiation and some control over prices.