The Comparative Advantage Theory Holds That a Country Will Gain

question 46

Multiple Choice

The comparative advantage theory holds that a country will gain from trade ________.

• A)when it exports products for which it has an acquired advantage and imports products for which another country has a natural advantage
• B)if it exports goods it can produce more efficiently than other countries and imports goods other countries can produce more efficiently than it can
• C)even though it can produce all goods more efficiently than other countries
• D)if it exports products using its abundant production factors in exchange for products for which it has scarce production factors

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Definitions:

Lawrence Welk

An American musician, accordionist, bandleader, and television impresario known for hosting the long-running TV series "The Lawrence Welk Show".

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The process by which a firm decides on the output level and price of goods or services to achieve the highest possible profit.

Senior Citizens

Older adults, typically those aged 65 and above, often regarded as being in the retirement phase of life.

Lawrence Welk

An American musician, accordionist, bandleader, and television impresario, known for hosting "The Lawrence Welk Show."