One of the Limitations to the Theory of Comparative Advantage

question 93

Multiple Choice

One of the limitations to the theory of comparative advantage is that resources do not always move easily from one economic activity to another and the process creates:

• A) inflation
• B) friction and human suffering
• C) new government regulations and higher taxes
• D) new product development
• E) excessive transportation costs and retraining concerns

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Definitions:

Freedom of the Press

The right to circulate opinions in print without censorship by the government.

Private Property

Land or belongings owned by an individual or a legal entity, protected by law from unauthorized use or entry by others.

Article III

The section of the United States Constitution that establishes the judicial branch of the federal government, outlining the powers of the federal courts and judges.

Trial by Jury

A legal process in which a jury either makes a decision or makes findings of fact which are then applied by a judge.