Which of the Following Is True of the Absolute Advantage

question 49

Multiple Choice

Which of the following is true of the absolute advantage theory of international trade? 

• A) It emphasizes relative advantage in one economic activity that one nation enjoys in comparison with other nations. 
• B) It divides the countries of the world into three categories based on innovation. 
• C) It advocates extensive government intervention in international trade. 
• D) It was the first theory that advocated free trade.

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Definitions:

Punisher

Anything that follows a response and weakens it or decreases the probability that it will occur.

Strengthens

To make or become stronger or more resilient, often used in the context of physical, emotional, or mental attributes.

Weakens

To diminish in strength, effectiveness, or power.

Primary Reinforcement

A stimulus that satisfies a basic biological need and inherently reinforces a behavior, such as food for hunger.