The Principle of Comparative Advantage Does Not Provide Answers to Certain

question 53

Multiple Choice

The principle of comparative advantage does not provide answers to certain questions.One of those questions is

• A)Is it possible for specialization and trade to benefit more than one party to a trade?
• B)Is it possible for specialization and trade to increase total output of traded goods?
• C)Do opportunity costs play a role in people's decisions to specialize in certain activities?
• D)What determines the price at which trade takes place?

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Definitions:

Decision Making

is the cognitive process of selecting a course of action from among multiple alternatives.

Groupthink

A psychological phenomenon in which the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Preferred Policy

A favored course of action or set of guidelines adopted by an organization or government.

Empowerment

Refers to the enhancement of an individual's or group's ability to make choices and transform those choices into desired actions and outcomes.