When the Principle of Comparative Advantage Is Used to Guide

question 44

Multiple Choice

When the principle of comparative advantage is used to guide trade, then a country specializes in producing only

• A) goods with the highest opportunity cost.
• B) goods with the lowest opportunity costs.
• C) goods for which production takes fewer worker-hour than another country.
• D) goods for which production costs are more than average total costs.

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Definitions:

Shelled Arthropod

Arthropods that have an external skeleton or shell, such as crustaceans and certain insects, providing protection and support.

Fossil

Physical evidence of an organism that lived in the ancient past.

Cambrian Period

A geological era around 541 million years ago, marked by a rapid diversification of life forms and the appearance of most major groups of animals in the fossil record.

Great Chain of Being

A hierarchical structure of all matter and life, believed in medieval Christianity to have been decreed by God.