The Main Advantage of Trade Between Two Countries Is That

question 39

Multiple Choice

The main advantage of trade between two countries is that

• A) trade makes both countries more self-sufficient.
• B) employment in both countries will increase.
• C) both countries have consumption choices beyond their current resource and production constraints.
• D) trade will lead to a more equitable distribution of income in both countries.

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Definitions:

Purely Competitive

A market structure characterized by many sellers offering identical products with no single seller able to influence the market price.

Total Revenue

The total amount of money a firm receives from sales of its products or services before any expenses are subtracted.

Quantity Sold

The total number of units of a product or service that have been purchased by consumers during a specific period.

Profit-Maximizing

The method or approach of modifying production and pricing to secure the maximum achievable profit.