The Law of Comparative Advantage Explains Why a Nation Will

question 36

Multiple Choice

The law of comparative advantage explains why a nation will benefit from trade when

• A) it exports more than it imports.
• B) its trading partners are experiencing offsetting losses.
• C) it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
• D) it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.

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Definitions:

Female Babies

refer to infants who are biologically identified as female at birth.

Malthusian Perspective

A viewpoint based on Thomas Malthus' theory that population growth tends to outpace the growth of food supply, leading to inevitable constraints such as famine and poverty unless controlled.

Capitalism

An economic system where trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

Demographic Trends

Patterns in the composition of a population over time, including changes in fertility, mortality, and migration rates.