People Living in Different Countries Can Benefit from International Trade

question 56

Multiple Choice

People living in different countries can benefit from international trade because

• A) different countries use different currencies.
• B) trade makes it possible for the residents of different countries to specialize in the production of those things they do best.
• C) trade makes it possible for people to acquire goods from foreigners cheaper than they could be produced domestically.
• D) both b and c are correct.
• E) all of the above are correct.

Distinguish between unilateral and bilateral contracts and their requirements.

Recognize the role of forbearance as a form of consideration.

Comprehend the criteria for enforceable agreements and the necessity of mutual consideration.

Identify different types of consideration and their legal validity.

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Definitions:

Per-Unit Tax

A tax that is charged on each unit of a good or service that is sold.

Tax Burden

The measurement of the total level of taxes imposed on individuals or businesses by a government, often expressed as a percentage of income or GDP.

Market Demand

The complete sum of a product or service that consumers in a market are willing and can purchase at various price points.

Market Supply

The total quantity of a good or service that sellers are willing and able to sell at various prices within a certain period.