An Assumption an Economist Might Make While Studying International Trade

question 188

Multiple Choice

An assumption an economist might make while studying international trade is

• A)there are only two countries.
• B)countries only produce two goods.
• C)technology does not change.
• D)All of the above are possible assumptions.

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Definitions:

Additional Costs

Additional costs refer to expenses that are not typically included in the initial budget or cost estimates, such as unexpected fees, charges, or overheads.

Plant Assets

Long-term tangible assets that are used in the production of goods and services and are not intended for resale.

Productive Capabilities

The capacity of a system, entity, or resource to produce goods or services of value, often influenced by technological, human, and physical resources.

Depreciation Rate

The percentage at which an asset's value decreases over time.