According to the Theory of Comparative Advantage, Specialization and Free

question 119

Multiple Choice

According to the theory of comparative advantage, specialization and free trade will benefit

• A) only that trading party that has both an absolute advantage and a comparative advantage in the production of all goods.
• B) all trading parties, even when some are absolutely more efficient producers than others.
• C) only that trading party that has an absolute advantage in the production of all goods.
• D) only that trading party that has a comparative advantage in the production of all goods.

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Definitions:

Gatterman-Koch Formylation

A chemical reaction that introduces an aldehyde group into aromatic compounds using carbon monoxide, hydrochloric acid, and a Lewis acid catalyst.

Anisole

An organic compound consisting of a methoxybenzene group; used as a precursor in the synthesis of perfumes, pharmaceuticals, and pesticides.

Reagents

Substances or compounds that are added to a system in order to bring about a chemical reaction or are involved in chemical reactions.

P-Methylanisole

An organic compound where a methyl group is attached to the para position of anisole, a methoxybenzene.