The Theory of Comparative Advantage Suggests That Nations Should Produce

question 79

Multiple Choice

The theory of comparative advantage suggests that nations should produce a good if they

• A) have the lowest opportunity cost.
• B) have the lowest wages.
• C) have the most resources.
• D) can produce more of the good than any other nation.

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Definitions:

Ascertain

To find out or learn with certainty, typically used in the context of gathering information or clarity about a situation or condition.

Sound Mind

A legal term referring to an individual's mental capability to understand and appreciate the consequences of their actions and to make, understand, and execute legal decisions.

Witness

An individual who gives testimony or is called to testify in court because they have knowledge relevant to the case being tried.

Settlor

A settlor is the person who creates a trust by transferring assets into it, setting the terms and electing trustees to manage the trust assets for the benefit of the beneficiaries.