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:

Long Position

Holding an asset with the expectation that it will increase in value, often contrasted with taking a short position, betting on a decline in value.

Futures Contracts

Futures contracts are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Futures Exchanges

Marketplaces where futures contracts and options on futures contracts are traded, facilitating the buying and selling of commodities or financial instruments at a predetermined future date.

Delivery Date

The specific date on which a financial transaction, especially pertaining to futures or options contracts, is scheduled to be settled or executed.