As a General Rule

question 13

Multiple Choice

As a general rule,

• A) large economies tend to be more open than small economies
• B) small economies tend to be more open than large economies
• C) small economies tend to export more services than goods
• D) small economies tend to have greater diversity of exports than large economies
• E) small economies tend only to trade with each other, and large economies tend to do the same

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Definitions:

Opportunity Cost

The sacrifice involved in not picking the subsequent preferable option at the time of decision-making.

Freight Train

A train that is used for transporting goods, cargoes, and commodities rather than passengers.

Producing

The process of creating goods or services that can be sold or used, often involving raw materials, labor, and machinery.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs.