The Law of Comparative Advantage Implies That a Nation, Individual

question 52

Multiple Choice

The law of comparative advantage implies that a nation, individual, or region should trade for those economic goods for which it

• A) has an absolute advantage.
• B) has a comparative advantage.
• C) is a low opportunity cost producer.
• D) is a high opportunity cost producer.

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Definitions:

Shareholders

Individuals or entities that legally own one or more shares of stock in a joint-stock company.

Long-Run Profit Maximization

A strategy where a firm aims to achieve the highest possible profit over an extended period, considering and adjusting to changes in the business environment.

Ethical Problems

Issues or situations that require a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Ethical Decisions

Choices made based on moral principles and values.