Large Developed Countries Can Produce More of Practically Everything Than

question 83

Multiple Choice

Large developed countries can produce more of practically everything than can small, less developed countries. Which of the following statements is true?

• A) The large country has no incentive to trade with the smaller country.
• B) It would be impossible for the smaller country to have a comparative advantage in making any products that the larger country wants to buy.
• C) Trade will benefit both countries if each country has a comparative advantage in a traded product.
• D) Trade between the countries is more likely to benefit the small country and harm the larger country.

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Definitions:

Taste Buds

Structures, located in papillae on the tongue, that contain the sensory receptors called taste receptors.

Tongue

A muscular organ in the mouth of most vertebrates that manipulates food for mastication and is used in the act of swallowing and articulating speech.

Gustation

The sense of taste or the act of tasting.

Audition

The sense or act of hearing.