When the Principle of Comparative Advantage Is Used to Guide

question 44

Multiple Choice

When the principle of comparative advantage is used to guide trade, then a country specializes in producing only

• A) goods with the highest opportunity cost.
• B) goods with the lowest opportunity costs.
• C) goods for which production takes fewer worker-hour than another country.
• D) goods for which production costs are more than average total costs.

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Definitions:

Insulation

A resistive coating that prevents the flow of electrons.

Mil-foot

A unit of measurement used in the United States to denote the product of a material's thickness in mils and its length in feet, commonly applied in the measurement of wire cross-sectional area.

Maximum Operating

Refers to the highest operational limit in terms of performance, temperature, pressure, or other relevant parameters under which a device or machine can safely function.

Ambient

Referring to the surrounding area or environment, often used to describe temperature, light, or sound conditions around a device or system.