The First Example of Comparative Advantage Appeared in a Book

question 17

Multiple Choice

The first example of comparative advantage appeared in a book that was published in 1817.This example showed that mutually beneficial trade between two countries (England and Portugal) was possible.The example assumed that two goods (wine and cloth) could be produced by both countries.Which of the following describes the conclusion of this example?

• A)Portugal had a comparative advantage in wine and England had a comparative advantage in cloth.
• B)Portugal had a comparative advantage in both wine and cloth,but its advantage in cloth was greater.
• C)England had a comparative advantage in both wine and cloth,but its advantage in cloth was greater.
• D)England had an absolute advantage in both wine and cloth,but a comparative advantage in wine.

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Definitions:

Morphological Convergence

Describes the phenomenon where organisms from different evolutionary backgrounds develop similar structures or features due to adaptation to similar environments or ecological niches.

Temperate Rainforests

Cooler climate rainforests found in temperate zones, characterized by high precipitation and biodiversity.

Analogous Structures

Similar body structures that evolved separately in different lineages (by morphological convergence).

Morphological Convergence

The evolutionary phenomenon where organisms from different lineages develop similar anatomical features independently, usually due to similar environmental pressures.