Which of the Following Statements Is True

question 107

Multiple Choice

Which of the following statements is true?

• A) Comparative advantage means that total world output will be greatest when each good is produced by the nation that has the highest domestic opportunity cost of producing it.
• B) Comparative advantage means that a nation can gain from trade only if it has a lower labor productivity than its trading partner.
• C) Specialization will be complete among nations when opportunity costs increase as the nations produce more of a particular product.
• D) Specialization will be less than complete among nations when opportunity costs increase as the nations produce more of a particular product.

---

Definitions:

Gaseous Biogeochemical Cycles

The circulation of chemical elements like carbon and nitrogen through the atmosphere, involving exchanges between living organisms and physical processes.

Carbon Dioxide

A gas devoid of color and smell, produced from the burning of carbon-containing compounds and the act of breathing. Naturally found in the environment, it is essential for plant photosynthesis.

Atmosphere

The layer of gases surrounding the Earth that is held in place by gravity and is composed of nitrogen, oxygen, and trace gases.

Lower Layer

Refers to the bottom or underneath sections in a stratified structure, such as atmospheric layers, soil profiles, or bodies of water.