Trade Due to Expanded Markets Differs from Trade Due to Comparative

question 11

Multiple Choice

Trade due to expanded markets differs from trade due to comparative advantage in that

• A)the gains from trade due to expanded markets do not rely on differences in efficiencies.
• B)the gains from trade due to comparative advantage do not rely on efficiencies.
• C)trade due to expanded markets tends to be interindustry trade.
• D)trade due to comparative advantage tends to be intraindustry trade.
• E)trade due to expanded markets relies on factor abundance.

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Definitions:

Default

Failure to fulfill a duty or obligation, typically in the context of financial agreements such as failing to make loan payments.

Obtaining Control

The act of gaining the power or authority to manage or direct something or someone.

Collateral

Assets pledged by a borrower to secure a loan or credit, which the lender may seize if the borrower fails to repay the loan.

Deposit Account

A bank account that holds deposited funds, such as a savings or checking account, allowing for the deposit and withdrawal of money.