A Country Will Not Trade Unless

question 34

Multiple Choice

A country will not trade unless

• A)It has an absolute advantage.
• B)The terms of trade are superior to domestic opportunities.
• C)Its balance of trade is in a surplus position.

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Definitions:

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it.

Scapegoating

The practice of unfairly blaming an individual or group for problems or negative outcomes, often without justification.

Aggression

Behavior intended to harm or intimidate others, which can be physical, verbal, or non-verbal, motivated by a variety of factors including frustration, social learning, or biological predisposition.

Hindsight Bias

The tendency to believe, after an outcome is already known, that one would have foreseen it, often referred to as the "I-knew-it-all-along" effect.