The Theory of Comparative Advantage

question 49

Multiple Choice

The theory of comparative advantage:

• A) helps to analyse the absolute advantages of countries involved.
• B) suggests that a country that does not have an absolute advantage should import everything.
• C) analyses the basis of trade where an individual nation can gain from such trade.
• D) suggests that a country specialise in producing goods or services for which it has a higher opportunity cost.

---

Definitions:

Serial Killer

A person who commits a series of murders, often with no apparent motive and typically following a characteristic, predictable behavior pattern.

Gang Member

An individual who is a part of a group or gang that is often involved in criminal activities and operates with a degree of loyalty and hierarchy.

Sandwich Generation Effect

A situation where an individual cares for their aging parents while supporting their own children, often facing emotional, financial, and logistical challenges.

Nineteenth Century

The period of years from 1801 to 1900, characterized by significant social, political, and technological changes that shaped modern society.