According to the Theory of Comparative Advantage, a Country Gains

question 27

Multiple Choice

According to the theory of comparative advantage, a country gains from foreign trade even though it may have an absolute advantage in the production of all products because ________.

• A)the country will forgo producing its less efficient output in order to produce its more efficient output
• B)workers become more efficient through specialization
• C)economies of scale will reduce cost
• D)there will be more incentive to develop cost-saving technologies

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Definitions:

Homoplasy

Similarity in the characters in different species that is due to convergent evolution, not common descent. Characters that exhibit such similarity are called homoplastic features or homoplastic traits. Compare with homology.

Modified Leaves

Modified leaves are leaves that have evolved to perform functions other than photosynthesis, such as protection, storage, or reproduction.

Lamarck's

Pertains to Lamarckism, a theory of evolution that emphasizes the inheritance of acquired characteristics.

Darwin's Mechanism

A theory proposed by Charles Darwin that describes the process of natural selection as the mechanism by which evolution takes place.