In the Real World, We Don't Observe Countries Completely Specializing

question 103

Multiple Choice

In the real world, we don't observe countries completely specializing in the production of goods for which they have a comparative advantage.One reasons for this is

• A)comparative advantage works better in theory than in practice.
• B)because some countries also have an absolute advantage in the production of those goods.
• C)tastes for many traded goods are similar in many countries because of globalization.
• D)production of most goods involves increasing opportunity costs.

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Definitions:

Jerome Kagan

A prominent figure in developmental psychology, known for his extensive research on infants' temperamental traits and the impact of biology and environment on personality.

Inhibited

A state or condition where actions, processes, or reactions are slowed down or prevented.

Uninhibited

Characterized by a lack of restraint or the ability to act freely without concern for social norms.

Temperaments

Inborn personality traits that influence how one typically responds to the environment.