Examples of Comparative Advantage Show How Trade Between Two Countries

question 182

Multiple Choice

Examples of comparative advantage show how trade between two countries can make each better off.Compared to their pre-trade positions,trade makes both countries better off because in each country

• A)total employment is greater.
• B)total consumption of goods is greater.
• C)wages are higher.
• D)total welfare is greater.

---

Definitions:

Extraction Rights

Legal permissions granted to companies or individuals to extract natural resources such as minerals, oil, or gas from the land.

Federal Government

The national government of a federal country, where powers are divided between the central government and the states or provinces.

Railroad System

A network of tracks, trains, and facilities for the transportation of passengers and goods over long distances, significantly contributing to economic development and the expansion of territories.

American Economy

The complex system of production, distribution, and consumption of goods and services within the United States, characterized by a mixed economy with both private and public enterprises.