The Comparative Advantage Argument in Free Trade

question 1

Multiple Choice

The comparative advantage argument in free trade

• A)ignores the cost of readjustment.
• B)is a short-run argument.
• C)only works for two goods at a time.
• D)none of the above

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Definitions:

Conservation

In psychology, the concept that a child recognizes that quantity does not change with physical rearrangement; in environmental science, the protection of natural resources.

Public Commitments

Decisions or promises made in a public setting, which are more likely to be upheld due to the added pressure of social accountability.

Prompts

Cues that convey a message and remind people to do something.

Hypocrisy Induction

A technique for effecting behavior change by confronting people with the inconsistency between their attitudes and their behavior.