When Productive Activity Is Organized According to Comparative Advantage

question 73

Multiple Choice

When productive activity is organized according to comparative advantage,

• A) there is a decrease in the amount of goods and services that an economy can gain from its resources.
• B) there is an increase in the amount of goods and services that an economy can gain from its resources.
• C) there is no change in the amount of goods and services that an economy can gain from its resources.
• D) the amount of goods and services that an economy can gain from its resources may increase or decrease.
• E) there is a decrease in the quality of the goods and services produced in the economy.

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Definitions:

Magnitude

The size, extent, or importance of something, often used in mathematical contexts to describe the absolute value of quantities.

Whiskey Rebellion

Violent protest by western Pennsylvania farmers against the federal excise tax on whiskey, 1794.