The Principal Concept Behind Comparative Advantage Is That a Nation

question 268

Multiple Choice

The principal concept behind comparative advantage is that a nation should

• A)maximize its volume of trade with other nations.
• B)use tariffs and quotas to protect the production of vital products for the nation.
• C)concentrate production on those products for which it has the lowest domestic opportunity cost.
• D)strive to be self-sufficient in the production of essential goods and services.

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Definitions:

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The cessation of all biological functions that sustain a living organism.

Partnership Agreement

A contract between partners in a partnership which outlines the terms and conditions of the relationship in detail.

Partners

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Partnership Credit Card

A partnership credit card is a credit card issued to a partnership firm, allowing the partners to make business-related purchases up to a certain credit limit.