Free trade refers to trade between countries without government restrictions

Refer to the table above. If the world price for a pair of trousers is $12, then which of the following statements is true?

A) All the four countries will export trousers. B) All the four countries will import trousers. C) Country A and Country B will import trousers, whereas Country C and Country D will export trousers. D) Country C and Country D will import trousers, whereas Country A and Country B will export trousers.

The process by which inputs are transformed to outputs is referred to as:

A) production. B) distribution. C) depreciation. D) absorption.