Which of the Following Is True If a Country Specializes

question 55

Multiple Choice

Which of the following is true if a country specializes in producing the goods for which it has a comparative advantage and then trades?

• A) Output increases,and everyone in the economy benefits.
• B) Income is redistributed toward import-competing industries.
• C) There are gainers and losers,but the country as a whole is better off.
• D) Losers may outweigh the gainers,and a country may be worse off.

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Definitions:

Annual Premium

The amount paid annually for an insurance policy, providing coverage over a specified period of time.

Short-rate Refunds

A partial refund of premium on an insurance policy that has been canceled by the policyholder before its expiration, calculated using a method that is less than prorated.

Premium Rate

a higher price or cost than the standard, often for services that are considered to be of better quality or with added features.

Short Rate

The interest rate applied to the shortest duration loans or borrowings, often seen in monetary policy adjustments.