What Happens When Countries Specialize According to Their Comparative Advantage

question 106

Multiple Choice

What happens when countries specialize according to their comparative advantage?

• A) It is possible to increase world output of all goods.
• B) It is possible to increase world output of some goods only by reducing the output of others.
• C) One country is likely to gain from trade while others lose.
• D) All countries will lose from trade.

---

Definitions:

Stable Conformation

A molecular arrangement that is in a low energy state, making it less reactive and more resistant to changes.

Cis-1,2-Dimethylcyclohexane

An organic compound where two methyl groups are positioned on the same side of a cyclohexane ring, affecting its chemical and physical properties.

Stable Conformation

A molecular structure that is in a state of minimum energy and resists change.

Quaternary Carbon

A carbon atom bonded to four different groups, distinguishing it as a center of chirality in certain organic molecules.