Which of the Following Is Most Unlikely to Lead to a Reversal

question 57

Multiple Choice

Which of the following is most unlikely to lead to a reversal of a country's trade pattern?

• A)Growth in the country's endowment of the input that is initially scarce
• B)A proportionate increase in output in all the sectors of the economy
• C)International diffusion of technology
• D)Shifting tastes of the country's consumers

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Definitions:

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than others, leading to more efficient international trade.

Specialize

Focusing one’s efforts in a specific domain or area of expertise, often to increase efficiency and skill.

Greater Quantity

A higher amount or number of something, usually used in reference to the production or supply of goods.

Comparative Advantage

A principle stating that if a country produces a good at a lower opportunity cost than another, it has a comparative advantage.