When Opportunity Costs Differ Between Countries

question 32

Multiple Choice

When opportunity costs differ between countries,

• A)comparative advantages may not exist.
• B)specialization and trade can lead to increases in the production of all commodities.
• C)each country should produce only those goods for which it has an absolute advantage.
• D)only the smaller countries will benefit from trade.
• E)only the larger countries will benefit from trade.

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Definitions:

Cognitive Advancement

The development and improvement in mental processes such as thinking, problem-solving, and decision-making.

Internal Thought

The process of thinking that occurs within an individual's mind without external verbalization, involving various cognitive functions such as reasoning, remembering, and problem-solving.

Intermodal Perception

The process of combining information from more than one sensory system, such as visual and auditory senses.

Working Memory

A cognitive system responsible for temporarily holding information available for processing.