The First Example Used to Explain Comparative Advantage Used Two

question 176

Multiple Choice

The first example used to explain comparative advantage used two countries (England and Portugal) and two goods (wine and cloth) to show that

• A)each country would be better off from trade if it had an absolute advantage in producing one of the goods.
• B)each country would have a comparative advantage in the production of the good for which it had an absolute advantage.
• C)mutually beneficial trade was possible between two countries even if one had an absolute advantage in the production of both goods.
• D)mutually beneficial trade was possible between two countries even if one had a comparative advantage in the production of both goods.

---

Definitions:

Independent Variable

The variable in an experiment that is manipulated by the researcher to observe its effect on the dependent variable.

Dependent Variable

In experimental and statistical research, the variable that is being tested and measured, and is expected to change as a result of manipulations to the independent variable.

Random Assignment

A method used in experiments where participants are assigned to different groups in a manner that ensures each has an equal chance of being placed in any group.

Experimental Group

A group of participants in a study that receives the treatment or intervention being tested, allowing researchers to assess the effect of the treatment.