The Theory of Comparative Advantage Says That Countries

question 220

Multiple Choice

The theory of comparative advantage says that countries

• A) should restrict trade by cutting off all imports.
• B) should import those goods they can produce at a lower opportunity cost than another country.
• C) can never benefit from specialization in trade.
• D) should export those goods they can produce at a lower opportunity cost than another country.

---

Definitions:

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in a given time period.

Personal Satisfaction

The feeling of contentment or joy that arises from achieving something desired or valued by oneself.

Hostility

Feelings of deep-seated anger or aggression towards someone or something, often manifesting in antagonistic behaviors or attitudes.

Desirability

The quality of being wanted or sought after, often due to attractiveness, usefulness, or suitability.