The Theory of Comparative Advantage

question 41

Multiple Choice

The theory of comparative advantage

• A)claims that economic well-being is enhanced if each country's citizens produce only a single product.
• B)claims that economic well-being is enhanced when all countries compare commodity prices after adjusting for exchange rate differences in order to standardize the prices charged all countries.
• C)claims that economic well-being is enhanced if each country's citizens produce that which they have a comparative advantage in producing relative to the citizens of other countries,and then trade production.
• D)claims that no country has an absolute advantage over another country in the production of any good or service.

---

Definitions:

Approaches to Giving

Various methods or strategies adopted by individuals or organizations to donate resources, including time, money, or goods, to charitable causes.

Social Relationships

connections or interactions between individuals or groups, influencing the way people think, feel, and behave towards each other.

Traditional Fund-raising

The practice of gathering financial resources for a cause or organization through customary means such as events, direct mail, or personal solicitation.

Liquidity

Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.