If Two Countries Each Are Currently Producing Two Goods, and Each

question 204

Multiple Choice

If two countries each are currently producing two goods, and each begins to specialize in the good in which it has a comparative advantage, what will happen to total (world) output?

• A)It will increase.
• B)It will decrease.
• C)It will be unchanged in both countries.
• D)It will rise in one country and fall in the other, but the total is unchanged.
• E)Uncertain; economic theory has no answer to this question.

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Definitions:

Thalamus

A major part of the brain located in the center of the brain, acting as a relay station for sensory information and playing a key role in the regulation of consciousness, sleep, and alertness.

Glucagon-like Peptide-1

A hormone involved in the regulation of blood sugar levels by enhancing the secretion of insulin.

Vomiting

The involuntary, forceful expulsion of stomach contents through the mouth.

Calories

A unit of energy used to measure the amount of energy that food provides to the body.