When the Distribution of Resources and Technology Changes Among Nations

question 38

Multiple Choice

When the distribution of resources and technology changes among nations:

• A)it costs more to produce all products.
• B)the relative efficiency of producing products changes.
• C)it costs less to produce all products.
• D)each nation will specialize in producing one product.

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Definitions:

Wealth of Nations

A seminal book by Adam Smith that examines how nations achieve wealth and economic growth.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his book "The Wealth of Nations," which lays the foundation for classical economics.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market balance.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.