International Trade and the Associated Increase in International Competition Has

question 106

Multiple Choice

International trade and the associated increase in international competition has forced American businesses to

• A) raise production costs.
• B) improve productivity.
• C) be less efficient.
• D) redistribute income to workers.
• E) reduce productivity.

---

Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, a key concept used in decision-making and pricing strategies.

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not reduce availability to others.

Grocery Store

A retail store that sells food and other household goods.

Marginal Social Benefit

The additional benefit to society as a whole from one more unit of a good or service being consumed.