When a Country Possesses a Comparative Advantage in the Production

question 63

Multiple Choice

When a country possesses a comparative advantage in the production of one good or service, it:

• A)means that the country's opportunity cost is higher than of the other countries.
• B)discourages specialization.
• C)promotes greater self-sufficiency.
• D)permits gains from trade to be realized due to a more efficient use of resources.
• E)means that the country uses a capital intensive method of production.

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Definitions:

Customer Tastes

The preferences and inclinations of consumers that influence their purchasing behaviors, which can vary widely across different segments of the market.

Trademarks

Legally registered symbols, names, or slogans used to identify and distinguish products or services of a particular source.

Trade Names

The commercial names used by businesses to operate in the market, often different from their legal registered names.

Disclosure Statement

A document that outlines important or required information that a company must provide to consumers, investors, or regulatory bodies, particularly regarding financial operations, risks, or conflicts of interest.