The First Example Used to Explain Comparative Advantage Used Two

question 176

Multiple Choice

The first example used to explain comparative advantage used two countries (England and Portugal) and two goods (wine and cloth) to show that

• A)each country would be better off from trade if it had an absolute advantage in producing one of the goods.
• B)each country would have a comparative advantage in the production of the good for which it had an absolute advantage.
• C)mutually beneficial trade was possible between two countries even if one had an absolute advantage in the production of both goods.
• D)mutually beneficial trade was possible between two countries even if one had a comparative advantage in the production of both goods.

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Definitions:

Educational Reforms

Systematic changes and improvements made to public education policy and practices, often aimed at increasing accessibility, quality, and relevance of education in response to societal needs.

Civil Servants

Employees of the government who implement and administer public policies, distinct from political appointments or elected representatives.

Salons

Social gatherings typically held in private homes, originating in 17th century France, where intellectuals, artists, and politicians would converge to discuss ideas and promote their work.

Enlightenment Ideas

Philosophical and intellectual movements of the 17th and 18th centuries that emphasized reason, individualism, and skepticism towards traditional societal institutions, aiming for progress and reform.