As the Result of Specialization and Trade, According to the Law

question 130

Multiple Choice

As the result of specialization and trade, according to the law of comparative advantage, total output will

• A) decline because specialization is costly.
• B) rise only when there is an accompanying decline in the total output of one's trading partners.
• C) rise if a nation is a net exporter and fall if the nation is a net importer of goods and services.
• D) increase since resources will be better directed toward their highest-valued use.

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Definitions:

Disagreement

A situation where two or more parties have differing opinions, perspectives, or preferences.

Discord

Disagreement or conflict among people, groups, or things.

Prisoners' Dilemma

A scenario in game theory where two individuals acting in their own best interest do not result in the optimal outcome for either of them.

Confesses

To admit or acknowledge something typically that one feels guilty or ashamed of, often involving a wrongdoing.