The Expansion of World Output as a Result of Trade

question 103

Multiple Choice

The expansion of world output as a result of trade is mainly due to the effects of

• A)Higher trade barriers.
• B)Improved terms of trade.
• C)Specialization according to comparative advantage.
• D)Specialization according to absolute advantage.

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Definitions:

Bystander Effect

The concept within social psychology where an individual's likelihood to help someone in need diminishes when they are in the company of others.

Social Interference

The impact that the presence or actions of others have on an individual's behavior, which can hinder or facilitate performance.

Individualist

A person who prioritizes independence and self-reliance, often valuing personal goals and self-expression over collective goals.

Collectivist Groups

Societies or groups that prioritize the needs and goals of the group over the individual, emphasizing interdependence, cooperation, and communal values.