Traders Should Specialize in the Good: That

question 193

Multiple Choice

Traders should specialize in the good: that:

• A) that they can produce with the lowest opportunity cost.
• B) in which they have an absolute advantage.
• C) in which their trading partner has a comparative advantage.
• D) in which they do not have an absolute advantage.

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Definitions:

Ethnicity

A category of people who identify with each other based on common ancestral, social, cultural, or national experiences.

Social Capital

Personal social networks populated with people who willingly cooperate, exchange information, and build trusting relationships with each other.

Relational

Pertaining to the way in which two or more concepts, objects, or people are connected; often used within contexts involving interpersonal relationships.

Structural

Pertaining to the physical makeup or framework of objects, buildings, or systems, indicating how parts are organized or constructed.