Since the End of World War II in 1945,the World

question 39

Multiple Choice

Since the end of World War II in 1945,the world has experienced an accelerating movement toward

• A)free trade.
• B)an increase in trade barriers.
• C)self-sufficiency in most industrial nations.
• D)a breakdown of international trade.

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to enter or exit the market, and perfect knowledge of prices and technology.

Marginal Product

The additional output produced as a result of employing one more unit of a particular input while keeping other inputs constant.

Value of Marginal Product

The extra revenue a firm gains by employing an additional unit of input.

Labor Demand

Labor demand reflects the quantity of labor that employers are willing and able to hire at a given wage rate in the market.