Suppose That a Country That Has a High Level of Output

question 51

Multiple Choice

Suppose that a country that has a high level of output per person agrees to trade with a country that has a low level of output per person.Which country can benefit?

• A)only the one with a low level of output per person.
• B)only the one with a high level of output per person.
• C)both
• D)neither

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Definitions:

Remaining

The portion or quantity left over or unallocated after other parts have been accounted for or allocated.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns, usually through stocks, bonds, or real estate.

Investee

The entity in which an investment is made, often subject to the influence or control of the investor through ownership of equity shares or other mechanisms.

Bargain Purchase

An acquisition where the purchase price is significantly less than the fair value of the net identifiable assets of the acquired company.