The Principle of Comparative Advantage Contends That a Nation Should

question 56

True/False

The principle of comparative advantage contends that a nation should specialize in and export the good in which its absolute advantage is smallest or its absolute disadvantage is greatest.

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Definitions:

World Price

The international market price of a good or service, determined by global supply and demand, which affects domestic pricing and trade policies.

United States

A North American nation consisting of 50 states, one federal district, five main autonomous territories, and multiple possessions.

Imported

Products or services that are imported from one country into another for the purpose of being sold or utilized.

World Price

The global market rate at which a good can be bought or sold, influenced by supply and demand on an international scale.