If the Residents of a Country Specialize in a Good

question 18

Multiple Choice

If the residents of a country specialize in a good in which they have a comparative advantage and trade with residents in another nation, the residents in the first country

• A)can consume more than they could without trade.
• B)can produce more than they could without trade.
• C)will have a lower standard of living.
• D)will be exploited by the second nation.

---

Definitions:

Opportunity Cost

The economic disadvantage of forgoing the subsequent best option when a choice is being made.

Graduate Program

An advanced academic and professional course of study beyond the bachelor's degree.

Inflation

The rate of acceleration in the average pricing of goods and services, thereby diminishing the power of purchase.

Unemployment

The condition where people who have the ability to work and are actively looking for jobs cannot secure employment.