According to the Theory of ________,Trade Is Beneficial Even If

question 81

Multiple Choice

According to the theory of ________,trade is beneficial even if one country is less efficient in the production of two goods,as long as it is less inefficient in the production of one of the goods.

• A) absolute advantage
• B) mercantilism
• C) comparative advantage
• D) factor proportions

---

Definitions:

Human Capital Theory

An economic perspective that regards individuals' skills, knowledge, and experience as valuable resources that enhance productivity.

Economic System

The organized way a society allocates resources, produces goods and services, and distributes wealth among its members.

Wage Differences

The disparities in income received by individuals for their labor, often influenced by factors like occupation, education, experience, and gender.

Functionalist Theory

A theoretical perspective in sociology that views society as a complex system whose parts work together to promote solidarity and stability.