Under the Banner of Comparative Advantage, the Free Trade of Specialized

question 53

Multiple Choice

Under the banner of comparative advantage, the free trade of specialized goods will result in:

• A)a reduction in overall economic efficiency.
• B)a reduction in the real wage level in one of the two countries.
• C)an increase in the real wage levels in both of the countries.
• D)an increase in the real wage level in only one of the two countries.
• E)an increase in the absolute efficiency of only one of the two nations.

---

Definitions:

Forebrain

The anterior part of the brain, including the cerebrum and structures related to it, responsible for complex cognitive, sensory, and motor functions.

Cerebral Cortex

The outermost layer of the brain, involved in high-level functions such as sensory perception, cognition, and motor control.

Occipital Lobe

The portion of the cerebral cortex located at the back of the brain, responsible for processing visual information.

Wernicke's Area

A region of the brain that is important for language development and comprehension, located in the temporal lobe.