A Country That Has a Comparative Advantage in Producing Capital

question 66

Multiple Choice

A country that has a comparative advantage in producing capital goods will ________ a country that has a comparative advantage in consumption goods.

• A) reap all of the gains from trade when it trades with
• B) grow slower than
• C) reap fewer of the gains from trade when it trades with
• D) specialize in producing capital goods and trade with

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Definitions:

Sarcasm

The use of ridicule, insults, taunting, and/or caustic irony.

Euphemism

The replacement of a term that has a negative association by a neutral or positive term.

Precising Definitions

Definitions aimed at reducing vagueness or ambiguity by providing a more exact or specific meaning.

Vagueness

The quality of being unclear, imprecise, or lacking in detail, often leading to ambiguity or misunderstanding.