To Gain from Comparative Advantage, Countries Must Not Only Trade

question 124

Multiple Choice

To gain from comparative advantage, countries must not only trade, they must also

• A)save.
• B)invest.
• C)engage in research and development.
• D)engage in capital accumulation.
• E)specialize.

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Definitions:

Precise Recommendations

Detailed and specific suggestions or guidelines intended to achieve an objective or solve a problem.

Businesses

Organizations engaged in the provision of goods or services with the primary aim of making a profit.

Tradable Pollution

A system where companies or countries can buy or sell allowances to emit a certain amount of pollutants, with the aim of reducing overall emissions.

Cap-And-Trade

An environmental policy tool that limits greenhouse gas emissions by allocating emission allowances and permitting the trading of these allowances among emitters.