The Principle of Comparative Advantage Asserts That

question 12

Multiple Choice

The principle of comparative advantage asserts that

• A)not all countries can benefit from trade with other countries.
• B)the world price of a good will prevail in all countries,regardless of whether those countries allow international trade in that good.
• C)countries can become better off by exporting goods,but they cannot become better off by importing goods.
• D)countries can become better off by specializing in what they do best.

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Definitions:

Production Cost

The total expense incurred in the manufacturing of a product, including the costs of materials, labor, and overhead.

Overbooking

The practice of selling or booking more seats or reservations than available capacity, used in industries like airlines and hospitality to account for cancellations.

Optimization

The process of making something as fully perfect, functional, or effective as possible, often through mathematical models in operations research.

Upset Customers

Upset customers are individuals dissatisfied with a product or service, potentially leading to complaints or negative feedback.