When Nations Begin to Specialize in Their Areas of Comparative

question 102

Multiple Choice

When nations begin to specialize in their areas of comparative advantage and then trade with the rest of the world,the result is that

• A)the average standard of living in the world will go up and everyone will be better off.
• B)the world moves from a point on the global PPC to a point outside the curve.
• C)the average standard of living in the world will go down but some producers will be better off.
• D)the average standard of living in the world will go up but producers of some goods and services will be worse off.

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Definitions:

Measured

Measured refers to the process of quantifying or evaluating something through systematic observation or calculation.

Income Inequality

The unequal distribution of annual or lifetime income among individuals or households in an economy.

Time Dimension

The aspect of any study or phenomenon that pertains to its occurrence, development, or measurement over time.