Which of the Following Is Not a Basis for Trade

question 41

Multiple Choice

Which of the following is not a basis for trade between two nations?

• A)different skill levels of the labor forces
• B)one nation's absolute advantage
• C)a difference in tastes between countries
• D)economies of scale
• E)different capital stocks

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Definitions:

Split-off

A point in the manufacturing process where multiple products are generated from a common input.

Opportunity Cost

The potential benefit lost when choosing one alternative over another.

Excess Capacity

The amount by which current production capabilities exceed the current demand for a company's products or services.

Performance Evaluation

The process of assessing and reviewing an employee's or an organization's performance against predetermined objectives or criteria.