Which of the Following Statements Is True

question 86

Multiple Choice

Which of the following statements is true?

• A) When a nation has an absolute advantage over other nations in producing all goods and services, it cannot gain from trade.
• B) Absolute advantage relates to production per unit of inputs, and comparative advantage involves the opportunity cost of producing different goods.
• C) When a nation has an absolute disadvantage over other nations in producing a good, it cannot gain from trade.
• D) Absolute advantage involves the opportunity cost of producing different goods, and comparative advantage relates to production per unit of inputs.

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Definitions:

Slaves

Individuals forced into labor without pay and denied freedom, a practice seen in many societies historically and, in some forms, continuing today.

Great Compromise

A fundamental agreement made during the 1787 Constitutional Convention, which established the structure of the U.S. Congress with both proportional and equal representation.

Large and Small States

A reference to the balance of power and representation concerns between more populous and less populous states within a federated system, especially during the drafting of the U.S. Constitution.

Representation

The process by which elected officials serve as proxies for their constituents in the decision-making process.