The Theory of Comparative Advantage Illustrates That Specialization Can Lead

question 52

Multiple Choice

The theory of comparative advantage illustrates that specialization can lead to

• A) a rise in poverty among many groups of people.
• B) an increase in overall consumption and efficiency.
• C) greater equality among all people.
• D) the rise of powerful international organizations.

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Definitions:

Territorial Concessions

Agreements in which a country cedes a portion of its territory or the rights to it to another country, often as part of a treaty or settlement.

Spanish Monarchy

The political system of Spain in which the country is ruled by a monarch, a family lineage that has historically oscillated between periods of monarchy and republic.

French and Indian War

A series of military engagements between Britain and France in North America (1754–1763), part of a larger conflict known as the Seven Years' War.

British

Relating to Great Britain or the United Kingdom, encompassing England, Scotland, Wales, and Northern Ireland, its people, or its culture.