A Country That Has a Comparative Advantage in Producing Capital

question 355

Multiple Choice

A country that has a comparative advantage in producing capital goods will _ a country that has a comparative advantage in consumption goods.

• A) specialize in producing capital goods and trade with
• B) reap fewer of the gains from trade when it trades with
• C) reap all of the gains from trade when it trades with
• D) grow slower than

---

Definitions:

Defense Mechanisms

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Cognitive Therapies

A group of psychotherapeutic approaches aiming to change dysfunctional thoughts, behaviors, and emotions through problem-solving strategies.

Irrational Propensities

Tendencies to think or behave in an irrational manner, often leading to negative emotional outcomes or unproductive actions.

Consciousness Raising

The process of increasing awareness or enlightening individuals about certain issues, often to inspire change or social action.