In Order to Obtain an Efficient Allocation of Resources Worldwide

question 192

Multiple Choice

In order to obtain an efficient allocation of resources worldwide

• A) countries that have a lot of resources should ship resources to countries that do not have a lot of resources.
• B) countries that have a lot of resources should not trade since poorer countries cannot compete.
• C) each country should produce the good they have a comparative advantage in and then trade.
• D) no trade among countries should occur.

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Definitions:

Accounting Equation

The foundational formula in accounting that states assets equal liabilities plus owners' equity, essentially showing what the company owns is financed by debt and shareholders' equity.

Land Sale

A land sale involves the transaction where ownership of a piece of land is transferred from one party to another, typically involving legal documentation and financial compensation.

Loan Payoff

A payment or series of payments made to clear a loan's outstanding balance.

Original Purchase

The initial acquisition of an asset or item, often referring to the first time it was bought or the condition in which it was first obtained.