Comparative Advantage Arises Because

question 10

Multiple Choice

Comparative advantage arises because

• A) all resources are equally effective in the production of goods.
• B) the division of labor increases efficiency.
• C) the division of labor helps markets function effectively.
• D) not all resources are equally effective in the production of goods.

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Definitions:

Mean, Angry Person

An individual who frequently exhibits hostility or irritability towards others without significant provocation.

Proximity

The physical or psychological closeness between people or objects, which can influence relationships and interactions.

Saturation Effect

A phenomenon whereby a system's performance levels off or declines after reaching a certain point, despite continued increases in input or effort.

Birds-of-a-Feather Effect

The phenomenon that people tend to form relationships and bond with others who have similar characteristics, such as interests and values.