When Nations Trade According to Their Comparative Advantages

question 67

Multiple Choice

When nations trade according to their comparative advantages,

• A)one nation has an absolute advantage in producing all goods
• B)all opportunity costs of production are the same
• C)world economic efficiency falls
• D)at least one country is made better off through trade
• E)at least one country is made worse off through trade

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Definitions:

Retailer

A business or person that sells goods directly to consumers, typically operating from a physical or online store.

National Brand

Products or services that are marketed under a manufacturer's branding and distributed across an entire country, distinct from private labels or local brands.

Private-label Brand

Products manufactured by one company for sale under another company's brand, typically offered as lower-cost alternatives to national brands in retail stores.

National Brand

A brand that is marketed and recognized across an entire country, offering a consistent product or service quality and experience.