When Nations Specialize in Their Areas of Comparative Advantage and Then

question 183

Multiple Choice

When nations specialize in their areas of comparative advantage and then trade with the rest of the world, the result is that

• A) the average standard of living in the world will go down.
• B) the average standard of living in the world will go up.
• C) the world will move from a point on the production possibilities curve to a point inside the curve.
• D) worldwide economic efficiency will decrease.

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Definitions:

Genotype

The genetic makeup of an organism that determines its specific traits, often in contrast to its observable characteristics (phenotype).

Esterase Production

Refers to the biological synthesis of esterases, enzymes that split esters into an acid and an alcohol in a chemical reaction with water.

Beneficial Allele

An allele that contributes to an increased fitness of an organism, enhancing survival and reproduction in a specific environment.

Fixation

The process by which a genotype or allele reaches a frequency of 100% in a population, eliminating all other variations.