When a Nation Exports a Good or Service in Which

question 231

Multiple Choice

When a nation exports a good or service in which it has a comparative advantage,production of the good or service

• A) decreases.
• B) stays the same.
• C) increases.
• D) might change, but more information about what the country imports is needed to determine if production increases, decreases, or does not change.
• E) might change, but more information about what else the country exports is needed to determine if production increases, decreases, or does not change.

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Definitions:

Multinational Companies

Are corporations that operate in multiple countries aside from their home country, managing production or services across international borders.

Political

Relating to the government or public affairs of a country.

Social Ladder

The hierarchical structure within a society, where individuals or groups are ranked according to status or authority.