If There Are Big Gains to Be Had from Specialization

question 103

Multiple Choice

If there are big gains to be had from specialization and trade,countries generally don't produce one good because:

• A) national economies often are perfectly free markets.
• B) there is perfectly free trade between national economies.
• C) specialization is generally limited by trade agreements.
• D) All of these are true.

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Definitions:

Interest Rates

The amount charged by lenders as a percentage of the amount borrowed, representing the cost of borrowing money.

Yields To Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.

Par Value

The face value of a bond or stock as stated on the certificate or instrument, not necessarily its market value.

Mature

Refers to when a bond reaches its expiry date-payback or when a market or company has reached a state of equilibrium with little growth.