Improvements in Productivity May Lead to Decreasing Comparative Costs If

question 118

Multiple Choice

Improvements in productivity may lead to decreasing comparative costs if

• A) the assumption of fixed technologies under constant costs is relaxed.
• B) technologies available to each nation are maintained the same.
• C) resource endowments do not vary.
• D) comparative advantage does not change.

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Definitions:

Perls

Refers to Friedrich (Frederick) Salomon Perls, a psychiatrist and psychotherapist known for developing Gestalt therapy.

Developed

A state or condition that has achieved significant progress in terms of economic growth, technological advancement, and social welfare.

Active

Engaging or ready to engage in physically energetic pursuits; the opposite of passive.

Directive

A form of guidance or instruction given which aims to influence the conduct or behavior of individuals or groups.