Which of the Following Correctly Describes Free International Trade in Accordance

question 71

Multiple Choice

Which of the following correctly describes free international trade in accordance with comparative advantage?

• A)It is typically favored by producers in importing countries.
• B)It is typically favored by producers in exporting countries,but hated by their workers.
• C)It is typically favored by producers in exporting countries,including their workers.
• D)It is typically hated by consumers in importing countries.
• E)It is typically hated by farmers,but looked upon favorably by manufacturers.

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Definitions:

Fixed Inputs

Resources or factors of production, such as land or capital, that remain constant regardless of the level of output or production.

Variable Inputs

Resources or inputs whose quantity can be changed in the short term to adjust the level of production.

Long-run Average Total Cost

A curve that shows the lowest average cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.