Which of the Following Is an Implication of the Law

question 138

Multiple Choice

Which of the following is an implication of the law of comparative advantage?

• A) Countries with small amounts of labor relative to capital should specialize in producing labor-intensive commodities.
• B) Since workers in high-income countries utilize larger amounts of capital than workers in less developed nations, trade between capital-rich and capital-poor nations results in the exploitation of labor in the less developed countries.
• C) Countries that are high cost producers of agricultural products should trade those products for goods they can produce only at a low opportunity cost.
• D) Countries that are low opportunity cost producers of timber products should trade those products for goods they can produce only at a high opportunity cost.

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Definitions:

Common Sense

A pamphlet written by Thomas Paine in 1776 advocating for American independence from Britain through plain and persuasive arguments.

Balance of Power

A principle in international relations whereby nations strive to ensure that no single state or alliance becomes disproportionately powerful, aiming to prevent dominance.

Eighteenth-Century Diplomacy

Refers to the conduct of international relations and negotiation tactics among European powers in the 18th century.

Bill of Rights 1689

A historic English document that laid down limits on the powers of the crown and established the rights of Parliament and rules for freedom of speech.