Factories and Machines Are Examples Of

question 180

Multiple Choice

Factories and machines are examples of:

• A)consumption goods.
• B)non-market goods.
• C)value-added goods.
• D)capital goods.

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Definitions:

Autarky Price

The price of a good or service within a country when it is completely self-sufficient and not engaged in international trade.

World Price

The international price at which goods are traded between countries, influencing domestic prices and the balance of trade.

Comparative Advantage

The ability of a country or entity to produce a specific good or service at a lower opportunity cost than others, leading to specialization in trade.

Tires

Rubber-based components that fit around the rims of wheels to provide vehicles with traction, support, and a cushion from the impact of the road.