The Principle of Comparative Advantage Does Not Provide Answers to Certain

question 53

Multiple Choice

The principle of comparative advantage does not provide answers to certain questions.One of those questions is

• A)Is it possible for specialization and trade to benefit more than one party to a trade?
• B)Is it possible for specialization and trade to increase total output of traded goods?
• C)Do opportunity costs play a role in people's decisions to specialize in certain activities?
• D)What determines the price at which trade takes place?

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Definitions:

Equation

An equation is a mathematical statement that asserts the equality of two expressions, typically containing one or more variables.

Center

In geometry, the central point of a circle or sphere, equidistant from all points on the perimeter or surface; in other contexts, it refers to a focal point or main area of activity.

Point

A location in space, often defined by its coordinates in a given dimension.

Center

The midpoint of a geometric shape or object, or the average position of all the points in the shape.