The Principle of Comparative Advantage Suggests That If Nations Devote

question 32

Multiple Choice

The principle of comparative advantage suggests that if nations devote more of their resources to the production of those goods that they produce most efficiently, then all trading nations

• A) must pay tariffs.
• B) benefit.
• C) lose profits.
• D) none of these

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Definitions:

Alloy

A substance made by melting two or more elements together, at least one of them a metal, resulting in a material with characteristics different from the individual components.

Metallic Elements

Elements that are good conductors of heat and electricity, have a shiny appearance, and are malleable and ductile.

Homogeneous Mixture

A mixture in which the composition is uniform throughout, such as solutions where the solute is completely dissolved in the solvent.

Sugar

A generic name for sweet-tasting, soluble carbohydrates, many of which are used in food.