Once a Country Has Lost Its Comparative Advantage in Producing

question 107

Multiple Choice

Once a country has lost its comparative advantage in producing a good, its income will be ________ and its economy will be ________ if it switches from producing the good to importing it.

• A)higher; less efficient
• B)higher; more efficient
• C)lower; less efficient
• D)lower; more efficient

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Definitions:

Travel Costs

Expenses incurred for the purpose of traveling, including transportation, accommodation, and meals.

Medical Costs

Expenses incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any structure or function of the body.

Calculated

Determined or computed by using mathematical methods or processes to reach a numerical result.

Prescription Drugs

Medications that are legally available only with a valid prescription from a licensed healthcare provider.