If Nations Trade on the Basis of Comparative Advantage

question 126

Multiple Choice

If nations trade on the basis of comparative advantage

• A)a nation can usually gain only it has an absolute advantage.
• B)all trading partners share equally in the gain.
• C)all trading partners share in the gain with distribution determined by their negotiating ability.
• D)a nation with an absolute advantage gains more than the other nations.

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Definitions:

Social Facilitation

When the mere presence of others improves performance.

Group Polarization

The phenomenon by which a group's prevailing attitudes or beliefs become more extreme following group discussions, as members tend to support more extreme positions.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Door-In-The-Face

A persuasion technique involving making a large, unreasonable request that is likely to be refused in order to increase the likelihood of agreement to a smaller request later.