International Trade Based on the Principle of Comparative Advantage Creates

question 220

True/False

International trade based on the principle of comparative advantage creates a more efficient allocation of world economic resources.

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Definitions:

Economic Activity

Any action that involves the production, distribution, and consumption of goods and services at all levels within a society.

Declining

A phase in the product life cycle where sales and profits begin to decrease as the product loses market interest or becomes obsolete.

Inflationary Economy

An economic condition characterized by a general increase in prices and fall in the purchasing value of money.

Escalates

The process of increasing or rising in intensity, magnitude, or severity.