When a Nation Has a Comparative Advantage in the Production

question 100

Multiple Choice

When a nation has a comparative advantage in the production of a particular good,

• A) the nation tends to avoid specialisation.
• B) the opportunity cost of producing that good is higher than that of other goods.
• C) the comparative advantage encourages self- sufficiency.
• D) the nation can gain from trade.

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Definitions:

Bounded Rationality

A concept in decision-making that suggests individuals are limited in their ability to process information, leading to satisficing rather than optimal decisions.

Groupthink

A phenomenon in decision-making where the desire for consensus within a group can lead to poor choices and suppress dissenting viewpoints.

Divergent Thinking

A mental strategy or procedure aimed at fostering innovative ideas by investigating a wide range of possible options.

Verification Stage

A phase in various processes where the validity or accuracy of something is checked or confirmed, often used in the context of testing or quality assurance.