A Country Engaging in Trade According to the Principles of Comparative

question 3

Multiple Choice

A country engaging in trade according to the principles of comparative advantage gains from trade because it

• A) is producing exports indirectly more efficiently than it could alternatively.
• B) is producing imports indirectly more efficiently than it could domestically.
• C) is producing exports using fewer labor units.
• D) is producing imports indirectly using fewer labor units.
• E) is producing exports while outsourcing services.

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Definitions:

Rate Of Return

Earnings or losses on an investment throughout a certain timeframe, indicated as a percentage of the investment’s inception cost.

Projects

Specific initiatives or plans undertaken by a business or organization to achieve certain goals, often involving research, development, or investment in new products or services.

Diesel Electric Hybrid

A vehicle or machine that uses a combination of a diesel engine and electric motors for propulsion, aiming to increase efficiency and reduce emissions.

Increase Emissions

Refers to a rise in the release of pollutants into the atmosphere from sources such as vehicles, industries, or machines.