Which of the Following Would Not Result from All Countries

question 12

Multiple Choice

Which of the following would not result from all countries specializing according to the principle of comparative advantage?

• A)The size of the economic pie would increase.
• B)Worldwide production of goods and services would increase.
• C)The well-being of citizens in each country would be enhanced.
• D)Each country's production possibilities frontier would shift inward.

---

Definitions:

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term; these include items like rent, salaries, and insurance.

Depreciation Expense

The distribution of a physical asset's cost over its lifespan to account for depreciation or becoming outdated.