The Principle of Comparative Advantage Implies That

question 24

Multiple Choice

The principle of comparative advantage implies that

• A) only wealthy countries ultimately can benefit from international trade.
• B) every country can benefit from international trade.
• C) we should limit the extent to which people specialize.
• D) most people are harmed by trade.

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Definitions:

Roommate

A person with whom one shares a living space, such as a room or apartment.

Self-Serving Bias

The common human tendency to attribute successes to personal attributes and failures to external circumstances.

Actor-Observer Bias

The inclination to ascribe personal actions to outside factors and other individuals' actions to their inherent traits.

Matching Hypothesis

A theory in social psychology that suggests individuals are more likely to form and succeed in relationships with others who are similar to them in physical attractiveness.