If a Country Has a Comparative Advantage in the Production

question 98

Multiple Choice

If a country has a comparative advantage in the production of a good:

• A) it can produce that good at a lower opportunity cost.
• B) it will find trade most beneficial when it trades with another country that has a comparative advantage in the same good.
• C) it will not find trade beneficial because other country(ies) won't have a comparative advantage in other goods.
• D) it must also have an absolute advantage in the good.

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Definitions:

ΔG°

The change in standard Gibbs free energy during a chemical reaction, indicating spontaneity at standard conditions.

Enthalpy

A thermodynamic quantity equivalent to the total heat content of a system. It is equal to the internal energy of the system plus the product of pressure and volume.

Endothermic

Refers to a process or reaction that takes in energy from the environment, usually as heat.

Exothermic

A chemical process that releases energy to its surroundings, usually in the form of heat.