The Use of Comparative Advantage in International Trade

question 105

Multiple Choice

The use of comparative advantage in international trade:

• A)is used only by larger countries.
• B)benefits all countries involved in trade.
• C)provides benefits to developed countries only.
• D)does not determine what goods countries should produce.

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Definitions:

Ideal Conditions

Circumstances or situations that are considered perfect or optimal for a certain process or experiment to occur.

Efficiency

The extent to which a process or intervention produces a desired effect or outcome with a minimum amount of waste, expense, or unnecessary effort.

Beneficial Result

A positive outcome or effect that contributes to the well-being or improvement of a situation or condition.

Scarce Resources

Limited availability of materials, goods, capital, or human resources that are valued in a society or economic system.