The Principle of Comparative Advantage Implies That

question 24

Multiple Choice

The principle of comparative advantage implies that

• A) only wealthy countries ultimately can benefit from international trade.
• B) every country can benefit from international trade.
• C) we should limit the extent to which people specialize.
• D) most people are harmed by trade.

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Definitions:

Rebound Effects

The phenomenon where symptoms return, often stronger, after the discontinuation of a treatment.

Excessive Worry

A state of mind where an individual experiences persistent and overwhelming anxiety and concern over matters, often disproportionate to their actual impact or probability.

Lithium

A chemical element used as a medication to treat bipolar disorder and help stabilize mood.

Manic Episodes

Manic episodes are periods of abnormally elevated mood and high energy, often characterized by impulsive behavior, reduced need for sleep, and racing thoughts, typically seen in bipolar disorder.