When Nations Specialize According to Their Comparative Advantage

question 88

Multiple Choice

When nations specialize according to their comparative advantage:

• A) total world production rises but total consumption in the world declines.
• B) total production and consumption in the world increase.
• C) consumption rises in one country but falls in all others.
• D) None of these happen.

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Definitions:

Amphetamines

A class of stimulant drugs used to treat ADHD and narcolepsy, which can also be abused for their euphoric effects.

Gamma-Hydroxybutyrate (GHB)

A central nervous system depressant often used recreationally for its euphoric effects, but also recognized for its use in treating narcolepsy and potential misuse as a "date rape" drug.

Liquid Ecstasy

A colloquial term for gamma-hydroxybutyrate (GHB), a central nervous system depressant often used recreationally for its euphoric and sedative effects.

Date-Rape Drug

A substance used to incapacitate someone in order to commit a sexual assault.