The Theory of Comparative Advantage States That

question 46

Multiple Choice

The theory of comparative advantage states that:

• A) Productivity rises more quickly when countries produce goods and services for which they have a natural talent.
• B) Countries that produce guns have an advantage over countries that produce butter.
• C) All countries start out on an equal playing field.
• D) Countries that operate under a policy of isolationism have a comparative advantage.

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Definitions:

Evaluation Apprehension

Anxiety or fear about being judged or evaluated by others, which can affect performance and participation.

Social Identity

A person's sense of who they are, based on their group membership(s), which shapes their feelings and behavior towards in-group and out-group members.

Steiner's Typology

A classification system proposed by Ivan Steiner that categorizes group tasks based on their nature, such as additive, disjunctive, conjunctive, and compensatory, to understand the impact of group interaction on performance.

Divisibility

A characteristic of a resource or situation that allows it to be divided or apportioned among multiple entities or processes.