When Each Country Specializes in Producing the Good for Which

question 79

Multiple Choice

When each country specializes in producing the good for which it has a comparative advantage:

• A)both countries can benefit.
• B)both countries always enjoy equal gains from trade.
• C)the country that is bigger will gain more surplus.
• D)All of these are true.

---

Definitions:

Social Contract Theory

A philosophical concept suggesting that people agree, either explicitly or implicitly, to surrender some freedoms to an authority in exchange for social order and protection.

Ethical Dilemmas

Situations in which a person is faced with difficult choices between conflicting moral principles or values.

Particular Relationships

Unique or specific connections and interactions between individuals based on personal, familial, or professional ties.

Mindfulness

A mental practice focusing on being acutely aware of what you're sensing and feeling in the moment, without interpretation or judgment.