According to the Principle of Comparative Advantage, If a Rich

question 189

Multiple Choice

According to the principle of comparative advantage, if a rich country trades with a poor country, then

• A) the rich country will benefit and the poor country will lose.
• B) the rich country will lose and the poor country will benefit.
• C) both countries will benefit.
• D) neither of the countries will benefit.

---

Definitions:

October Futures Contract

An agreement to buy or sell an asset at a predetermined price at a specified time in October.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, or other instruments at a specified price within a specific time period.

September

The ninth month of the year in the Gregorian calendar, often associated with the beginning of the academic year in many countries.