The Principle That "Trade Can Make Everyone Better Off" Applies

question 56

Multiple Choice

The principle that "trade can make everyone better off" applies to interactions and trade between

• A)families.
• B)states within the United States.
• C)nations.
• D)All of the above are correct.

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Definitions:

Export

The selling of goods or services produced in one country to buyers in another country.

Autarky Price

The autarky price is the price of a good in a country that is completely self-sufficient and does not engage in international trade for that good.

Total Surplus

The sum of consumer surplus and producer surplus in a market, a measure of the overall economic benefit to society.

Autarky

An economic system or condition of self-sufficiency where a country or entity does not engage in international trade, but relies on its own resources.