Specialization and international trade lead to
A. an enhanced level of consumption.
B. an outward shift in the production possibilities curve.
C. a lower opportunity cost of domestic production of all goods.
D. an inward shift in the consumption possibilities frontier.
Answer: A
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The above figure shows the demand curve for movie rentals from Redbox. Which of the following is TRUE?
A) Consumer expenditure on movie rentals will always increase whenever Redbox lowers its price. B) Redbox will receive more total revenue if it charges $4.00 per movie rental rather than $3.00. C) The price elasticity of demand for movie rentals falls as Redbox raises its price. D) The demand for movie rentals is more price inelastic at $1.00 than it is at $1.50.
Critically evaluate the following statement. "Only if a country enjoys an absolute advantage in the production of a particular good will that country find it beneficial to trade it with another country
What will be an ideal response?