To Gain from Comparative Advantage, Countries Must Not Only Trade

question 124

Multiple Choice

To gain from comparative advantage, countries must not only trade, they must also

• A)save.
• B)invest.
• C)engage in research and development.
• D)engage in capital accumulation.
• E)specialize.

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Definitions:

Future Incomes

Refers to the earnings or revenue that an individual or entity expects to receive in a future period.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by GDP.

Full Potential

The maximum capability or level of achievement an individual, organization, or system can reach based on its inherent qualities and resources.

Savings Rate

is the proportion of disposable income that is saved rather than spent by individuals or households.