According to the Principle of Comparative Advantage, Worldwide Output and Consumption

question 184

Multiple Choice

According to the principle of comparative advantage, worldwide output and consumption levels will be highest when goods are produced in nations where:

• A)domestic opportunity costs are lowest.
• B)inflation rates are low.
• C)the balance of trade is in a surplus position.
• D)the exchange rate is falling.

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Definitions:

Imagination-Based

Relating to, or characterized by, the creative ability of the mind to form images or concepts of external objects not present to the senses.

Relationship-Seeking Strategies

Plans of action that involve consciously making links between concepts or ideas that are not normally associated with each other.

Analytical Strategies

Approaches or methods used to break down complex information or data into manageable parts for better understanding, decision-making, or problem-solving.

Alertness

The state of being watchful and prompt to meet danger or emergencies, or to discover and take advantage of opportunities.