While Comparative Advantage Is the Biggest Reason Many Nations Engage

question 155

Multiple Choice

While comparative advantage is the biggest reason many nations engage in trade,two other important reasons are

• A) economies of scale and increased competition.
• B) economies of scale and decreased competition.
• C) increased competition and increased production costs.
• D) increased production costs and access to smaller markets.
• E) decreased competition and access to smaller markets.

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Definitions:

Appetite

The natural desire to satisfy a bodily need, especially for food.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness.

Black Widow Spider

A venomous spider known for the female's distinctive black color and red hourglass-shaped mark on its abdomen.

Acetylcholine

A neurotransmitter important for learning and memory, also involved in muscle activation.