What Is the Basic Message of the Theory of Comparative

question 5

Multiple Choice

What is the basic message of the theory of comparative advantage?

• A)Countries are similar in their ability to produce goods efficiently
• B)International trade is rarely beneficial to a country
• C)Potential world production is greater with unrestricted free trade than it is with restricted trade
• D)Trade is a zero-sum game

---

Definitions:

Noncooperative Games

Noncooperative games are scenarios in game theory where players make decisions independently, without collaboration, often under the assumption that every participant is trying to maximize their own gain without concern for others' outcomes.

Behavioral Game Theory

An extension of game theory that incorporates insights from psychology to understand decisions in strategic situations where players interact.

Behavioral Economics

A field of study blending insights from psychology and economics to explore how individuals actually make decisions, often in ways that deviate from rational expectations.

Varied Meals

Diverse and assorted types of food preparations included in one's diet to ensure nutritional balance and prevent monotony.