The Primary Flaw in the Theory of Absolute Advantage Is

question 112

Multiple Choice

The primary flaw in the theory of absolute advantage is that the theory ________.

• A) confuses the acquisition of treasure with the acquisition of wealth
• B) looks only at relative productivity differences rather than competitive differences
• C) suggests that no trade will occur when one country has an absolute advantage in multiple products
• D) incorporates the concept of opportunity cost in determining which goods a country should produce

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Definitions:

Resting Potential

The difference in electric charge between the inside and outside of a neuron's cell membrane when the neuron is not actively transmitting a signal.

Electrical Charge

A physical property that causes objects to experience a force when placed in an electromagnetic field, typically described as positive or negative.

Action Potential

A temporary reversal of the electrical polarity of the cell membrane that travels along a neuron, enabling the transmission of nerve impulses.

Neurotransmitters

Chemical substances in the nervous system that transmit signals from one neuron to another across synapses.