The Theory of Comparative Advantage Says That Countries

question 220

Multiple Choice

The theory of comparative advantage says that countries

• A) should restrict trade by cutting off all imports.
• B) should import those goods they can produce at a lower opportunity cost than another country.
• C) can never benefit from specialization in trade.
• D) should export those goods they can produce at a lower opportunity cost than another country.

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Definitions:

Experimental Group

A group of participants in a study that receives the treatment or intervention being tested, allowing researchers to assess the effect of the treatment.

Statistical Significance

Statistical Significance is a measure of how likely it is that an obtained result in a study is due to chance, used to assess the reliability of the observed differences or relationships in data.

Ethical Standards

A set of principles and guidelines designed to help professionals conduct business honestly and with integrity.

APA

American Psychological Association, a prominent professional organization for psychologists in the United States.