Which of the Following Is True of International Trade

question 4

Multiple Choice

Which of the following is true of international trade?

• A)Trade makes it possible to consume better quality goods at a high price.
• B)Trade makes the domestic producers of import substitutes better off.
• C)Trade makes it possible to consume outside of the production possibility frontier.
• D)In the absence of trade,a country always produces at a point below the production possibility frontier.

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Definitions:

Conglomerate Merger

A type of merger involving companies from unrelated business activities, aiming for diversification and risk reduction.

Competitive Relationship

The dynamics between organizations that are in the same market and compete against each other for customers, market share, and resources.

Economies-of-Scale Benefit

The cost advantage achieved when production becomes efficient, leading to a reduced cost per unit as output increases.

Inputs

Resources, information, or energy required for a process, system, or project to function effectively.