If Domestic Producers Have a Comparative Advantage in Producing a Good

question 43

Multiple Choice

If domestic producers have a comparative advantage in producing a good,

• A) trade restrictions will be required before the producers can benefit from their comparative advantage.
• B) trade restrictions will still be required before the domestic producers can compete with low-wage producers abroad.
• C) they will be able to compete effectively in a competitive world market.
• D) the government should subsidize production of the good so the domestic producers will be able to achieve a larger share of the world market.

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Definitions:

Mortuary

A facility where the bodies of deceased persons are prepared for burial or cremation and where funerals might be conducted.

Legal Capacity

Legal capacity is the ability of an individual or entity to enter into legally binding contracts, sue or be sued, and make decisions that carry legal consequences.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and other operational details among partners in a business venture.

Minor Partner

A partner in a business who has not reached the age of majority, limiting their legal capacity and liabilities within the partnership.