According to the Ricardian Principle of Comparative Advantage

question 72

Multiple Choice

According to the Ricardian principle of comparative advantage,
International trade increases a nation's total output because:

• A)the nation's resources are used where they are most productive.
• B)the output of the nation's trading partner declines.
• C)the nation can produce to the exterior of its production possibilities frontier.
• D)the nation is able to increase its consumption.

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Definitions:

Authorized

Authorized means having the official permission or approval to do something, especially in a legal or business context.

Liable

Legally responsible or obligated to make restitution or compensation for harm or breach.

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company, including financial planning and record-keeping, as well as financial reporting to higher management.

Accommodation Party

A person who signs a negotiable instrument for the purpose of adding his name and liability to another party to the instrument.