An Assumption an Economist Might Make While Studying International Trade

question 188

Multiple Choice

An assumption an economist might make while studying international trade is

• A)there are only two countries.
• B)countries only produce two goods.
• C)technology does not change.
• D)All of the above are possible assumptions.

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Definitions:

Perpetuity

A type of annuity that continues indefinitely, making regular payments for an infinite amount of time.

Compounded Monthly

The method of calculating interest where the earned interest is added to the principal each month, leading to interest on interest.

Perpetuity

Perpetuity refers to a type of annuity that pays a consistent amount of income to an individual indefinitely.

Compounded Quarterly

Interest calculation method where the interest is computed and added to the principal every quarter, impacting the total interest earned or paid.