The Theory of Comparative Advantage Suggests

question 35

Multiple Choice

The theory of comparative advantage suggests:

• A) that an industrialised country should only export.
• B) that a country that is not competitive should import everything.
• C) that a country should trade based on its comparative advantage.
• D) that one country exploits another country.

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Definitions:

Sherman Antitrust Act

The Sherman Antitrust Act is a landmark U.S. legislation passed in 1890, aimed at maintaining fair competition in the marketplace by prohibiting monopolies and other activities that restrained trade.

Duopolists

Duopolists are two firms that dominate a particular market or industry, influencing prices and market outcomes.

Demand for Pizza

The quantity of pizza that consumers are willing and able to purchase at various prices.

Cartel

An association of manufacturers or suppliers designed to maintain high prices and restrict competition.