The First Example Used to Explain Comparative Advantage Used Two

question 176

Multiple Choice

The first example used to explain comparative advantage used two countries (England and Portugal) and two goods (wine and cloth) to show that

• A)each country would be better off from trade if it had an absolute advantage in producing one of the goods.
• B)each country would have a comparative advantage in the production of the good for which it had an absolute advantage.
• C)mutually beneficial trade was possible between two countries even if one had an absolute advantage in the production of both goods.
• D)mutually beneficial trade was possible between two countries even if one had a comparative advantage in the production of both goods.

---

Definitions:

Hiring Freeze

A policy or decision by an organization to temporarily halt the recruitment of new employees, often due to financial constraints.

Dismissal

The act of terminating an employee's contract, commonly due to performance issues, misconduct, or organizational restructuring.

Performance

The execution of tasks and duties by an employee or organization measured against preset standards.

Unemployment Compensation

Government-provided financial assistance to individuals who are unemployed through no fault of their own and are actively seeking work.