The Thinking Process of Drawing Specific Statements from a General

question 27

Multiple Choice

The thinking process of drawing specific statements from a general principle or idea is called:

• A) scientific method.
• B) deductive reasoning.
• C) inductive reasoning.
• D) logical reasoning.
• E) logical-positivist reasoning.

---

Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, enabling more efficient trade.

Production Possibilities Line

A curve depicting all maximum output possibilities for two goods, given a set of inputs.

Trading Possibilities Line

A graphical representation showing the combinations of goods that a country can produce or trade given the resource constraints and technology.

International Trade

The exchange of goods and services between countries.