Examples of Comparative Advantage Show How Trade Between Two Countries

question 182

Multiple Choice

Examples of comparative advantage show how trade between two countries can make each better off.Compared to their pre-trade positions,trade makes both countries better off because in each country

• A)total employment is greater.
• B)total consumption of goods is greater.
• C)wages are higher.
• D)total welfare is greater.

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Definitions:

Underlying Continuum

An uninterrupted sequence or range in which items change gradually from one condition, form, or level to another, and are not perceived as discrete steps.

Nominal Level

The most basic level of measurement that categorizes data without implying any quantitative order or degree of difference between the categories.

Median

The middle value in a data set, separating the higher half from the lower half, providing a measure of central tendency that is not influenced by extreme values.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, such as the mean, median, or mode.