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.

Analyze the implications of trade policies on producer and consumer surplus.

Understand the principle of comparative advantage and its role in shaping international trade patterns.

Evaluate the impact of tariffs on government revenue.

Recognize the role of tariffs and quotas in protecting domestic industries.

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Definitions:

Customer

A person or organization that buys goods or services from a store or business.

Company

An entity formed to engage in a business, trade, or industrial activity, typically characterized by its legal independence and ownership structure.

Customer Relationship Management

A strategy for managing an organization's interactions with current and potential customers, often using data analysis to study large amounts of information.

Shopping Patterns

The behaviors and tendencies displayed by consumers when selecting, purchasing, and using goods and services.