Economic Theory States That Losing a Comparative Advantage at Producing

question 115

Multiple Choice

Economic theory states that losing a comparative advantage at producing one good means creating a comparative advantage at producing another. As an economy transitions from producing one good to producing another good:

• A) those who must transition from the production of one good to the production of another good may find the transition difficult in the short run.
• B) the transition can be seen as a success in the short run.
• C) outsourcing will always be good for every member of a society.
• D) no one will complain in the short run, but in the long run people may not like the transition.

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Definitions:

President Of The United States

The head of state and head of government of the United States, responsible for enforcing federal laws and serving as the commander-in-chief of the armed forces.

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Professionals who study the production, distribution, and consumption of goods and services, focusing on how individuals, groups, and societies use their resources to meet their needs and wants.

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An outline that conveys the peak output possibilities for two products, relying on a compilation of inputs that incorporate resources and other factors.

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