If the Opportunity Cost of Production for Two Goods Is

question 156

Multiple Choice

If the opportunity cost of production for two goods is different between two countries, then

• A) trade cannot benefit either country.
• B) only one country can be made better off by trade.
• C) mutually beneficial trade is possible.
• D) trade will only benefit both countries if one can lower its opportunity costs.

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Definitions:

APR

The Annual Percentage Rate, a measure of the total cost of credit to the borrower on an annual basis, including interest and transaction fees.

Monthly Payments

Regular payments made over a period of time, typically monthly, for loans, mortgages, or other financial obligations.

Savings Account

An account for deposits located at a bank or another financial institution, which ensures the safety of the principal amount and offers a small interest rate.

Discount Rate

It's the interest rate used in the process of discounted cash flow analysis to establish the current value of anticipated future cash flows.