When the Principle of Comparative Advantage Is Used to Guide

question 76

Multiple Choice

When the principle of comparative advantage is used to guide trade,then a country will

• A)specialize only in that good with the highest opportunity cost.
• B)specialize only in goods with the lowest opportunity costs.
• C)specialize only in that good where production is less per worker-hour than another country.
• D)specialize only in that good where production costs are more than average total costs.

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Definitions:

Equivalent Samples

Groups in a study or experiment that are made as similar as possible to ensure that results are due to the variable being tested rather than pre-existing differences among participants.

Cross-sectional

A research design that analyzes data from a population, or a representative subset, at a specific point in time.

Longitudinal

Relating to, involving, or measuring changes over time, especially in regards to the study or analysis of development or progression.

Longitudinal Design

A research strategy where subjects are followed and observed over a period of time to detect any changes in them.