Which of the Following Statements Is True

question 54

Multiple Choice

Which of the following statements is true?

• A)All individuals in both countries are made better off as a result of international trade.
• B)Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall.
• C)Although some individuals are made better off as a result of international trade, both countries may be made worse off overall.
• D)Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off.

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Definitions:

Total Revenue

The total income generated by the sale of goods or services by a company.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single participant has significant power to dictate the price of goods and services.

Market Price

The price at which a good or service is currently sold in the market.

Competitive Industry

An industry characterized by many sellers and buyers, where no single entity has the market power to influence prices significantly.