Specialization and Trade Based on Comparative Advantage Allow Nations to Attain

question 78

Multiple Choice

Specialization and trade based on comparative advantage allow nations to attain the following results, except

• A) higher combined output.
• B) higher consumption and standard of living.
• C) rising total employment.
• D) consuming combinations of products that are outside their PPCs.

---

Definitions:

Act of Bankruptcy

Any action taken by an individual or company that signals insolvency or the inability to pay debts as they come due.

Assignment of Liabilities

The transfer of responsibility for a debt or obligation from one party to another.

Stay of Proceedings

A court order to temporarily suspend the proceedings or actions in a case.

Bankrupt Discharged

The legal status indicating that an individual or entity, previously declared bankrupt, has been released from the obligation of repaying certain debts.