The Simple Comparative Advantage Model Assumed That Trade

question 97

Multiple Choice

The simple comparative advantage model assumed that trade

• A) changes efficiency with which a country utilizes resources.
• B) changes a country's stock of resources.
• C) allows for dynamic changes in the marketplace.
• D) does not change a country's stock of resources.

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Definitions:

Reality Principle

A psychoanalytic concept referring to the capacity of the mind to assess the external world and act upon it appropriately, as opposed to acting on the pleasure principle.

Pleasure Principle

A psychoanalytic concept that describes people's instinctual seeking of pleasure and avoidance of pain to satisfy biological and psychological needs.

Ego

A part of the psyche that mediates between the conscious, the unconscious, and the reality by deploying defense mechanisms.

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the moral conscience and the ideal self, influenced by societal and parental standards.