When a Country Loses Its Comparative Advantage in the Production

question 114

Multiple Choice

When a country loses its comparative advantage in the production of a good it:

• A) should stop trading and become self-sufficient.
• B) will gain the comparative advantage in the production of another good.
• C) will become a loser in trade in the long run.
• D) will still have the absolute advantage in the production of the good.

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Definitions:

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Privileges or entitlements conferred upon individuals by law.

Property

Items or assets owned by individuals or entities, including real estate, personal belongings, and intellectual rights, which have value and can be protected by law.

Bailments

A legal relationship in which physical possession of personal property is transferred from one person to another under agreement.

Contract

A binding accord between two or more parties that is legally recognized and includes mutual commitments.