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:

Mum Effect

The reluctance to communicate unfavorable news or feedback due to the fear of causing discomfort or facing negative repercussions.

Sender

The person or entity that initiates a message or communication.

Conscientious

Describes a person who is diligent, careful, and committed to doing their work or duties well.

Extraverted

Describing someone who is outgoing, socially confident, and thrives on interaction with others.