Which of the Following Is Not a Basis for Trade

question 41

Multiple Choice

Which of the following is not a basis for trade between two nations?

• A)different skill levels of the labor forces
• B)one nation's absolute advantage
• C)a difference in tastes between countries
• D)economies of scale
• E)different capital stocks

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Definitions:

Governmental Intervention

Actions taken by a government to influence or regulate various aspects of its economy or society, often to correct market failures or promote social welfare.

Wage and Price Controls

Government-imposed limits on the prices that can be charged for goods and services and/or wages that can be paid, typically in an attempt to control inflation.

Tax Revenue

The funds governments accumulate from tax collection.

Tax Rates

The percentage at which an individual or corporation is taxed on their income or profits.