When a Country Loses Its Comparative Advantage at Producing a Good

question 67

Multiple Choice

When a country loses its comparative advantage at producing a good it will:

• A) stop trading and become self-sufficient.
• B) gain a comparative advantage at producing another good.
• C) become a loser in trade in the long run.
• D) still have an absolute advantage at producing the good.

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Definitions:

Social Consciousness

The awareness shared by individuals within a society regarding social inequality, injustice, and the need for social change.

Planned Obsolescence

A policy of producing consumer goods that rapidly become obsolete and so require replacing, driven by design or functional limitations.

Stability of Capitalism

The ability of the capitalist economic system to maintain itself and avoid major crises through adaptations and reforms.

Instability of Communism

The susceptibility of communist regimes or systems to experience political, economic, or social disorder, often due to internal challenges or inefficiencies.