According to the Law of Comparative Advantage,a Nation Will Benefit

question 37

Multiple Choice

According to the law of comparative advantage,a nation will benefit from international trade when it

• A)imports more than it exports.
• B)exports more than it imports.
• C)imports goods for which it is a high opportunity-cost producer,while exporting goods for which it is a low opportunity-cost producer.
• D)exports goods for which it is a high opportunity-cost producer,while importing those goods for which it is a low opportunity-cost producer.

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Definitions:

Maximin Strategy

A decision-making rule used in game theory and statistics to maximize the minimum gain that can be achieved.

Dominant Strategy

In game theory, a strategy that is best for a player regardless of the strategies chosen by other players in the game.

Nash Equilibria

A concept in game theory where no player can gain by unilaterally changing their strategy, indicating a balance where each player's strategy is optimal given the other players' strategies.

Maximin Strategy

A strategy in decision-making which aims to maximize the minimum gain that can be earned, focusing on the worst-case scenario.