The Law of Comparative Advantage States That

question 98

Multiple Choice

The law of comparative advantage states that:

• A) economies should specialize in the good that they are comparatively better at making.
• B) economies should import goods that are comparatively cheaper to produce at home.
• C) economies should produce goods with comparatively low-quality inputs to reduce costs.
• D) economies should price products comparatively lower than the international price.

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Definitions:

Histogram

A graphical representation of the distribution of numerical data, where the data is divided into bins or intervals, and the frequency of the data within each bin is depicted.

Frequency Distribution

A summary of how often each different value occurs in a dataset, typically represented in a table or graph.

Pie Graph

A type of graph in which a circle is divided into sectors that each represent a proportion of the whole.

Frequency Distribution

A statistical tool showing how the numbers are distributed across various values in a dataset.