Applied to Trade in Two Goods Between Two Countries,the Principle

question 32

Multiple Choice

Applied to trade in two goods between two countries,the principle of comparative advantage does not suggest that

• A) a nation with an absolute disadvantage in producing both goods will have a comparative advantage in producing one of them
• B) the two nations will specialize in the production of different goods
• C) both nations will equally benefit from trade
• D) consumption possibilities will exceed production possibilities after trade
• E) each nation will import the good whose opportunity cost of production is higher at home than abroad

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Definitions:

Supportive Leadership

Leadership style focused on building trust and motivation among team members by showing concern for their needs and well-being.

Participative Leadership

A leadership style where decision-making is decentralized and employees at all levels are encouraged to contribute ideas and opinions.

Transactional Leadership

A leadership style focused on clear exchanges between leaders and followers, where accomplishment of tasks leads to rewards.

Power Distance

The extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.