In Autarky

question 16

Multiple Choice

In autarky,

• A)each country's consumption possibilities are the same as its production possibilities
• B)equilibrium is attained with the maximum gains from specialization and trade
• C)equilibrium is attained with the maximum amount of international trade
• D)a nation has such a high standard of living that there are technically no poor people
• E)a nation is governed by an individual with absolute authority

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Definitions:

GNI

Gross National Income, the total domestic and foreign output claimed by residents of a country, including wages, salaries, and investment income, less equivalent payments to non-residents.

United States

A North American nation, renowned for its considerable global impact on economic, political, and cultural affairs.

Developing Countries

Nations with lower levels of industrialization, underdeveloped economic infrastructure, and lower living standards.

Low-Income Countries

Nations with a gross national income (GNI) per capita below a specific threshold set by international organizations.