________ May Also Occur When Higher-Cost External Producers Are Replaced

question 44

Multiple Choice

________ may also occur when higher-cost external producers are replaced by lower-cost external producers within the free trade area.

• A) Trade creation
• B) A customs union
• C) Trade diversion
• D) A common market

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Definitions:

Human Capital

The combined abilities, expertise, and non-physical assets of people that contribute to generating economic wealth.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives.

Determinants Of Productivity

Factors that influence the output that an individual, company, or economy can produce with a given amount of input, such as technology, human capital, and innovation.

Ife Figures

Ancient artistic sculptures from the Yoruba city of Ife, in present-day Nigeria, celebrated for their sophisticated realism and craftsmanship.