The Theory of Comparative Advantage Suggests That Nations Should Produce

question 79

Multiple Choice

The theory of comparative advantage suggests that nations should produce a good if they

• A) have the lowest opportunity cost.
• B) have the lowest wages.
• C) have the most resources.
• D) can produce more of the good than any other nation.

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Definitions:

American Foreign Policy

The strategies and decisions through which the United States interacts with other nations, aimed at achieving goals related to national security, economic interests, and ideological dissemination.

George W. Bush

The 43rd President of the United States who served from 2001 to 2009, known for his responses to the 9/11 terrorist attacks and leading the country during the Iraq and Afghanistan wars.

Taliban

An Islamic fundamentalist political movement and military organization in Afghanistan, known for its strict interpretation of Sharia law.

World Trade Center

A large complex of office buildings in New York City, including the Twin Towers, tragically targeted in the terrorist attacks of September 11, 2001.