Equilibrium Production and Consumption Is Changed by a Country's Decision

question 41

Multiple Choice

Equilibrium production and consumption is changed by a country's decision to

• A) specialize in the production of one good in order obtain more of another good in which it has a comparative advantage.
• B) specialize in the production of one good in which it has a comparative advantage in order obtain more of another good in which it has a comparative disadvantage.
• C) specialize in the production of one good in which it has a comparative disadvantage in order obtain less of another good in which it has a comparative advantage.
• D) not to trade with another country with which has a comparative advantage.
• E) not to trade with another country with which has a comparative disadvantage.

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Definitions:

Motivation

The psychological drive or force that initiates, guides, and maintains goal-oriented behaviors.

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.

Reaction Tendencies

refers to habitual patterns of behavior, thought, or emotional response to particular situations or stimuli.

Structural Units

Basic components or building blocks that make up a structure, system, or complex entity.