When Nations Trade According to Their Comparative Advantages

question 67

Multiple Choice

When nations trade according to their comparative advantages,

• A)one nation has an absolute advantage in producing all goods
• B)all opportunity costs of production are the same
• C)world economic efficiency falls
• D)at least one country is made better off through trade
• E)at least one country is made worse off through trade

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Definitions:

Political Party

An organized group of people with similar political aims and opinions, that seeks to influence public policy by getting its candidates elected to public office.

Win Elections

The aim and process political candidates and parties undergo to gain office by receiving a majority or plurality of votes in an election.

Official Power

The legal authority vested in a person holding a governmental office or position to make decisions, enact policies, or command resources.

Political Party

A collective of individuals united by broadly similar political goals and views, aiming to impact governmental policy through the election of its members to positions of power.