Which Statement Is True

question 171

Multiple Choice

Which statement is true?

• A)Comparative advantage means that total world output will be greatest when each good is produced by the nation that has the highest domestic opportunity cost.
• B)Comparative advantage means that total world output will decline when each good is produced by the nation with the lowest domestic opportunity cost.
• C)Specialization is complete among nations when opportunity costs rise as any given nation produces more of a particular product.
• D)Specialization is less than complete among nations when opportunity costs rise as any given nation produces more of a particular product.

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Definitions:

Mutual Fund Shares

Units of ownership in a mutual fund, offering investors a proportionate stake in the fund's portfolio and its income.

Debt Securities

Bonds; also called fixed-income securities.

Life Insurance Reserves

Financial reserves set aside by life insurance companies to ensure they can meet future policyholder obligations.

Pension Reserves

Pension reserves are funds that are set aside by employers or governments to support future pension benefits for their employees or citizens.