An Example of Acquired Comparative Advantage Is That

question 83

Multiple Choice

An example of acquired comparative advantage is that

• A) the United States imports coffee beans because coffee beans cannot be grown in the United States.
• B) some U.S. consumers prefer German cars over American cars because German cars have a reputation for being very safe.
• C) China specializes in the production of labor-intensive goods because of the amount of labor available in the country relative to capital.
• D) the U.S. government provides a subsidy to firms that are trying to increase their exports to other countries.

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Definitions:

Desirable Characteristics

Qualities or traits that are considered attractive, valuable, and sought-after in individuals or items.

False Consensus Effect

The cognitive bias that leads an individual to overestimate how much other people agree with them or share their beliefs and behaviors.

False Uniqueness Effect

The tendency to underestimate the number of other people who share one’s most prized characteristics and abilities.

Theory Perseverance

The phenomenon where individuals maintain their beliefs even in the face of contradictory evidence, often due to the initial formation of a strong impression or belief.