The Principle of Comparative Advantage Explains How

question 134

Multiple Choice

The principle of comparative advantage explains how

• A)one nation can take advantage of another one through international trade.
• B)two nations may engage in mutually beneficial trade, even though one of them is more productive than the other.
• C)one individual can take advantage of another through international trade.
• D)some people are good at producing everything, while others have no comparative advantages.
• E)some nations end up with large trade surpluses.

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Definitions:

Individual To Group

The psychological and social process where individual behavior shifts when they are part of a group, influencing and conforming to group dynamics.

Stakeholders

Individuals, groups, or organizations that have an interest or stake in the performance and actions of a company or project, affecting or being affected by its activities.

Societal Values

The commonly held standards and norms within a society that dictate what is considered morally right or wrong.

Ethical Decisions

Choices made based on moral principles and values, aiming to do what is right and beneficial for the majority and avoiding harm.