When a Nation Has a Comparative Advantage in the Production

question 327

Multiple Choice

When a nation has a comparative advantage in the production of a particular good,

• A) the nation can gain from trade.
• B) the comparative advantage encourages self-sufficiency.
• C) the opportunity cost of producing that good is higher than that of other goods.
• D) the nation tends to avoid specialization.

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Definitions:

Investment Fraud

A scheme or deception relating to financial investments that results in financial loss for investors.

Investment Returns

The profit or loss derived from investing in securities, real estate, or other assets, typically expressed as a percentage.

Market Liquidity

The extent to which a market allows assets to be bought and sold quickly without affecting the asset's price significantly.

Liquidity Risk

The risk of being unable to quickly convert assets into cash without significant loss in value, affecting a company's or individual's ability to meet short-term obligations.