The Law of Comparative Advantage Suggests That

question 192

Multiple Choice

The law of comparative advantage suggests that

• A) individuals, states, and nations can all benefit if they trade with others.
• B) free trade among nations is harmful to an economy.
• C) each economy should strive to be self-sufficient.
• D) each country should attempt to produce roughly equal amounts of all goods.

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Definitions:

Rightful Owner

A person or entity that legally possesses property or title.

Constructive Trust

A legal remedy imposed by a court to prevent unjust enrichment by transferring property from the person who unjustly benefits to the rightful owner.

Settlor

The individual who creates a trust by legally transferring assets into it, setting the terms for its management and distribution.

Revoke

To take back or withdraw an offer, right, or privilege.