An Example of Acquired Comparative Advantage Is That

question 83

Multiple Choice

An example of acquired comparative advantage is that

• A) the United States imports coffee beans because coffee beans cannot be grown in the United States.
• B) some U.S. consumers prefer German cars over American cars because German cars have a reputation for being very safe.
• C) China specializes in the production of labor-intensive goods because of the amount of labor available in the country relative to capital.
• D) the U.S. government provides a subsidy to firms that are trying to increase their exports to other countries.

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Definitions:

Impulse Buying

The act of purchasing items on the spur of the moment, driven by emotional rather than rational decision-making processes.

Counterfeiting

The illegal replication of products, currency, or documents with the intent to deceive or defraud by passing off the imitation as genuine.

Fake Versions

Non-genuine imitations of products, often of lower quality and illegally produced, intended to deceive consumers.

Dark Side

Aspects of something that are negative, harmful, or undesirable, often hidden or overlooked.