If Domestic Producers Have a Comparative Advantage in Producing a Good

question 43

Multiple Choice

If domestic producers have a comparative advantage in producing a good,

• A) trade restrictions will be required before the producers can benefit from their comparative advantage.
• B) trade restrictions will still be required before the domestic producers can compete with low-wage producers abroad.
• C) they will be able to compete effectively in a competitive world market.
• D) the government should subsidize production of the good so the domestic producers will be able to achieve a larger share of the world market.

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Definitions:

Convergence

The act of moving towards unity or uniformity, especially the tendency of the eyes to move towards each other to focus on a single point.

Monocular Depth Cues

Depth cues that can be perceived by one eye alone.

Retinal Disparity

The slight difference in images between the two eyes due to their different positions, enabling depth perception.

Depth Perception

Refers to the ability to perceive the world in three dimensions (3D) and to understand the distance of objects from oneself and each other.