Nation Alpha Has a Comparative Advantage in Product X, and Nation

question 74

Multiple Choice

Nation Alpha has a comparative advantage in product X, and nation Beta has a comparative advantage in product Y. Trade in the two products will only benefit the two nations if

• A) the exchange ratio of X for Y is fixed.
• B) the terms of trade increase in both nations.
• C) there is excess capacity in both economies.
• D) the prices charged for X and Y reflect their domestic opportunity costs.

Understand the role of agriculture and resource exploitation in western development.

Describe the influence of activists and reform movements on Native American welfare and U.S. policies.

Comprehend the significance of railroads and technology in facilitating Western expansion and economic growth.

Identify the beginning and development of conservation movements in the U.S.

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Definitions:

Forest Work

Labor or activities related to the management, conservation, and exploitation of forests, including logging, reforestation, and wildlife preservation.

American Economy

The economic system of the United States, characterized by a mixed economy with private freedom, including the private sector being the majority of the economy.

Annual Rate

A term often used in finance to describe the interest rate over the period of one year.

Economic Growth

is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time, typically measured by GDP.