The Principle of Comparative Advantage Implies That Trade

question 158

Multiple Choice

The principle of comparative advantage implies that trade

• A)decreases the level of world employment.
• B)shifts production possibilities curves inward.
• C)increases the amount of world production.
• D)decreases the amount of world production.
• E)decreases the amount of world consumption.

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Definitions:

Phalanges

The bones in the fingers and toes of the human body.

Metacarpals

The five long bones in the hand that connect the wrist bones to the bones of the fingers and thumb, forming the palm.

Phalanges

The skeletal components located in the digits of humans and other vertebrates.

Carpals

The eight small bones that make up the wrist that connect the hand to the forearm.