_______ Is the Basic Message of the Theory of Comparative

question 29

Multiple Choice

_______ is the basic message of the theory of comparative advantage.

• A) Potential world production is greater with unrestricted free trade than it is with restricted trade.
• B) Potential world production is not significantly affected by trade policy.
• C) Potential world production is greater with restricted trade.
• D) It makes sense for a country to specialize in the production of those goods that it produces most efficiently and to buy the goods that it products less efficiently from other countries, unless this means buying goods from other countries that it could produce more efficiently itself.
• E) None of these answers is correct.

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Definitions:

Stearic Acid

A saturated fatty acid commonly found in animal and vegetable fats, used in various manufacturing processes.

Saponification

A chemical reaction involving the hydrolysis of esters in fats with alkali, resulting in the formation of soap and glycerol.

Tristearin

A triglyceride derived from glycerol and three units of stearic acid, commonly found in fat and oils.

Triolein

A triglyceride derived from glycerol and three oleic acid molecules, predominantly found in vegetable oils.