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Companies from the Nation of Atlantis Are More Efficient in the Production

question 97

Multiple Choice

Companies from the nation of Atlantis are more efficient in the production of certain types of apparel, while companies from the U.S. are more efficient in the production of certain types of computers. Which economic theory predicts that capital would move to Atlantis to be invested there in the apparel industry, and to the United States to be invested in its computer companies?

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Definitions:

Transaction

An economic event that involves the transfer of goods, services, or funds between two or more parties.

Incentives

Motivations or stimuli that influence the behavior of individuals or organizations, often aimed at achieving certain outcomes or goals.

Private Ownership

The possession of property by individuals or legal entities other than the government.

Clearly Defined

Specifically and unambiguously articulated or delineated.

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