If the Opportunity Cost of Production for Two Goods Is

question 156

Multiple Choice

If the opportunity cost of production for two goods is different between two countries, then

• A) trade cannot benefit either country.
• B) only one country can be made better off by trade.
• C) mutually beneficial trade is possible.
• D) trade will only benefit both countries if one can lower its opportunity costs.

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Definitions:

Return on Investment

A measure of the profitability and efficiency of an investment, calculated by dividing the gain from the investment by its cost.

EDGAR

The Electronic Data Gathering, Analysis, and Retrieval system used by the United States Securities and Exchange Commission (SEC) for the submission of corporate filings.

FINRA

The Financial Industry Regulatory Authority, a non-governmental organization that regulates member brokerage firms and exchange markets in the United States.

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities markets and protecting investors.