If Domestic Producers Have a Comparative Advantage in Producing a Good

question 43

Multiple Choice

If domestic producers have a comparative advantage in producing a good,

• A) trade restrictions will be required before the producers can benefit from their comparative advantage.
• B) trade restrictions will still be required before the domestic producers can compete with low-wage producers abroad.
• C) they will be able to compete effectively in a competitive world market.
• D) the government should subsidize production of the good so the domestic producers will be able to achieve a larger share of the world market.

---

Definitions:

Macrosocial Structures

Large-scale societal frameworks and institutions that influence patterns of social interaction and organization.

Verstehen

A German term used in sociology that means "understanding" or "insight," specifically the method of understanding social behavior from the perspective of those engaged in it.

Conflict Theory

A sociological perspective that views social life as a competition, emphasizing the role of power and inequality in shaping social relations.

Symbolic Interactionism

A sociological perspective focusing on the role of symbols and language as core elements of all human interaction.