The Concept of Comparative Advantage Leads to the Conclusion That

question 176

Multiple Choice

The concept of comparative advantage leads to the conclusion that:

• A) beneficial trade takes place if one country can produce everything more efficiently than another country.
• B) trade will benefit the two countries if the relative costs of production differ in the two countries.
• C) benefits from trade are possible only if all tariffs are eliminated.
• D) everyone benefits from increased trade both in the short run and the long run.

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Definitions:

Threats

External factors or conditions that could potentially cause harm to an organization's ability to achieve its goals.

Capabilities

the qualities, resources, and skills that an organization or individual possesses, enabling them to perform effectively.

SWOT Analysis

A strategic planning tool that evaluates an organization's strengths, weaknesses, opportunities, and threats to assist in making informed decisions.

Productive Use

The application of a resource or tool in a manner that increases efficiency, effectiveness, or output.