According to the Theory of Comparative Advantage, a Country Should

question 147

Multiple Choice

According to the theory of comparative advantage, a country should specialize in producing a good that involves:

• A) more inputs than those in other countries.
• B) fewer inputs than those in other countries.
• C) a higher opportunity cost than that of other countries.
• D) a lower opportunity cost than that of other countries.

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Definitions:

Consistent Preferences

A situation where an individual's choices or tastes remain stable over time, showing a reliable pattern of preference.

Confirmation Bias

The habit of looking for, decoding, valuing, and recalling details that support one’s established views or conjectures.

Social Comparison

The process of evaluating oneself by comparison with others, often in terms of abilities or social standing.

Causal Attribution

The process of inferring the causes of events or behaviors, which can influence how individuals interpret and respond to the world around them.