When a Country Pursues Its Comparative Advantage

question 35

Multiple Choice

When a country pursues its comparative advantage:

• A) World output is minimized.
• B) Potential gains from trade are minimized.
• C) Potential gains from trade are maximized.
• D) Imports and exports are equal.

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Definitions:

Tariff Policy

Government regulations related to taxes on imports or exports, designed to protect domestic industries or generate revenue.

Boston Police Force

Established in 1854, it is one of the oldest police departments in the United States, serving the city of Boston, Massachusetts.

Calvin Coolidge

The 30th President of the United States (1923-1929) known for his laconic style, conservative policies, and leadership during the Roaring Twenties.

McNary-Haugen Acts

Proposed federal legislation in the 1920s designed to support agricultural prices by buying surpluses and selling them abroad, though never enacted.