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:

Action Potential

A temporary reversal of the electrical polarity of the neuron's membrane, facilitating the transmission of nerve impulses.

Excitation

The process or state of being energized or stimulated to action or to increased activity.

Inhibition

The process of suppressing or restraining a behavioral or biological response.

Stimulants

Substances that increase activity in the brain and body, often enhancing alertness, attention, and energy.