Which of the Following Is Not a Reason for International

question 118

Multiple Choice

Which of the following is not a reason for international specialization?

• A) Some countries have educated, trained workers, while other countries have unskilled workers.
• B) Tastes and preferences tend to be different in different countries.
• C) Economies of scale can allow larger, more specialized producers to operate at lower average costs.
• D) People prefer having a choice of products.
• E) The world price of a good is determined by the world supply and demand for it.

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Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) periodically until the maturity date, at which point the principal amount is repaid.

Yield To Maturity

The total return expected on a bond if it is held until the maturity date.

Market Price

The market's current selling or purchasing rate for a service or asset.

Coupon Bond

A bond that pays the holder a fixed interest payment (coupon) every year until its maturity, at which point the principal is repaid.