The Principal Concept Behind Comparative Advantage Is That a Nation

question 93

Multiple Choice

The principal concept behind comparative advantage is that a nation should

• A) maximize its volume of trade with other nations.
• B) use tariffs and quotas to protect the production of vital products for the nation.
• C) concentrate production on those products for which it has the lowest domestic opportunity cost.
• D) strive to be self-sufficient in the production of essential goods and services.

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Definitions:

Homo Sapiens

The species name for modern humans, characterized by a capacity for complex language, symbolic thought, and social organization.

Neandertal

A member of an extinct species of human, closely related to modern humans, that lived in Europe and parts of Asia until about 40,000 years ago.

Acheulean Tool Tradition

An archaeological industry of stone tool manufacture characterized by distinctive oval and pear-shaped hand-axes associated with early humans.

Hand Axe

A prehistoric stone tool, often bifacially flaked to a point or edge, used by early humans for chopping, cutting, and as a general utility tool.