Which of the Following Restricts the Exploitation of Comparative Advantage

question 17

Multiple Choice

Which of the following restricts the exploitation of comparative advantage across countries?

• A) Language and cultural differences.
• B) Similar social norms.
• C) Homogenous quality of inputs.
• D) Homogenous tastes and preferences of the consumers.

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Definitions:

High-Quality Cars

Vehicles that are characterized by superior craftsmanship, reliability, durability, and performance compared to standard automobiles.

Low-Quality Cars

A term describing cars that are made with inferior materials or manufacturing standards, which might lead to poor performance, reliability, and satisfaction.

Demand Curves

Graphical representations that show the relationship between the price of a good and the quantity demanded by consumers at those prices.

Signaling Device

A method used by individuals or entities to convey information or intentions to others, often to indicate quality, trustworthiness, or status.