What Happens When Countries Specialize According to Their Comparative Advantage

question 106

Multiple Choice

What happens when countries specialize according to their comparative advantage?

• A) It is possible to increase world output of all goods.
• B) It is possible to increase world output of some goods only by reducing the output of others.
• C) One country is likely to gain from trade while others lose.
• D) All countries will lose from trade.

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Definitions:

Internal Environment

The conditions and processes occurring within an organism, keeping it stable despite external changes, also known as homeostasis.

Somatic Portion

Refers to the part of an organism's body that is not involved in reproduction, including cells that make up tissues, organs, and systems.

Peripheral Nervous

The portion of the nervous system lying outside the brain and spinal cord, which includes nerves branching off from the brainstem and spinal cord to the rest of the body.

Sensory Nerves

Nerves responsible for conveying sensory information from the body's periphery to the central nervous system, including touch, pain, temperature, and position sense.