The Law of Comparative Advantage Explains Why

question 102

Multiple Choice

The law of comparative advantage explains why

• A) specialization and exchange will make it possible for trading partners to expand their combined output.
• B) there will be an inverse relationship between the price of a product and the quantity of it that will be demanded.
• C) larger firms will have lower per unit costs than smaller firms.
• D) an increase in the price of a good will lead to an expansion in the quantity supplied by business firms.

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Definitions:

Nondirective Therapy

A form of psychotherapy where the therapist does not give advice or directives but helps the client explore and express their feelings.

Fixation

An obsessive interest or feeling towards a particular object or idea that can lead to developmental issues in psychoanalytic theory.

Physician

A physician is a medical professional who diagnoses, treats, and helps prevent diseases and injuries in patients, often holding a degree in medicine.

Psychoanalysis

A therapeutic approach and theory of personality developed by Freud, focusing on unconscious motives and conflicts.