Comparative Advantage Explains Why a Nation Will Benefit from Trade

question 4

Multiple Choice

Comparative advantage explains why a nation will benefit from trade when:

• A) it exports more than it imports.
• B) its trading partners are experiencing offsetting losses.
• C) it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
• D) it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.

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Definitions:

Cerebral Peduncle

A structure at the base of the brain, consisting of massive bundles of nerve fibers connecting the cerebrum to the brain stem.

Medulla

An inner region of an organ or tissue, especially the medulla oblongata in the brain that controls vital functions, or the central part of the adrenal glands.

Midbrain

A portion of the brainstem involved in vision, hearing, eye movement, and body movement. It is the central part of the brain, responsible for motor movement coordination and auditory and visual processing.

Gray Matter

Collection of nerve cell bodies, their dendritic processes, and associated neuroglial cells within the central nervous system.