While the Lowering of Trade Barriers Made Globalization of Markets

question 135

Multiple Choice

While the lowering of trade barriers made globalization of markets and production a theoretical possibility,which of the following has made it a tangible reality?

• A) Major advances in communication, information processing, and transportation technologies
• B) The rise of communism and the need for independent economies on a global scale
• C) The increasing diversity in consumer tastes and preferences worldwide
• D) The increasing differences in the material culture the world over
• E) The decreasing significance of the World Trade Organization

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Definitions:

Equilibrium Price

The cost at which the volume of goods available equals the volume sought by consumers.

Equilibrium Quantity

The amount of products or services available and sought after at the balance price.

Consumer Surplus

The divergence between the total price consumers are prepared to pay for a good or service and the actual price paid.

Producer Surplus

The difference between the amount producers are willing to supply a good for and the actual amount received by them when they make the sale.