When Opportunity Costs Differ Between Countries

question 38

Multiple Choice

When opportunity costs differ between countries,

• A)comparative advantages may or may not exist.
• B)specialization and trade can lead to increases in the production of all commodities.
• C)each country should produce only those goods for which it has an absolute advantage.
• D)only the larger countries will benefit from trade.
• E)only the smaller countries will benefit from trade.

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Definitions:

Brain

The brain is the organ of the central nervous system in humans and other vertebrates, responsible for cognitive functions, sensory processing, emotional responses, and regulation of vital body functions.

Neural Tube

The precursor to the central nervous system in vertebrates, which develops into the brain and spinal cord.

Forebrain

The anterior part of the brain, including the cerebral hemispheres, thalamus, and hypothalamus, responsible for sensory and associative functions.

Hindbrain

The posterior part of the brain comprising structures including the cerebellum and brainstem, responsible for regulating basic functions such as heartbeat and respiration.