A Small Nation Is One Which Must Have All of the Following

question 11

Multiple Choice

A small nation is one which must have all of the following characteristics except:

• A) It does not affect world price by its trading.
• B) It faces an infinitely elastic world supply curve for its import commodity.
• C) It faces an infinitely elastic world demand curve for its export commodity.
• D) It has a small geographic area.

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Definitions:

Accidental Sale

A transaction where goods or services are sold unintentionally, often due to a misunderstanding or mistake.

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to sales.

Fair Market Value

An estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the parties involved to be enforceable.