When a Country Loses Its Comparative Advantage in the Production

question 114

Multiple Choice

When a country loses its comparative advantage in the production of a good it:

• A) should stop trading and become self-sufficient.
• B) will gain the comparative advantage in the production of another good.
• C) will become a loser in trade in the long run.
• D) will still have the absolute advantage in the production of the good.

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Definitions:

Mid-Nineteenth Century

Refers to the period from 1850 to 1860, a time characterized by significant social, economic, and political changes in the United States, often associated with pre-Civil War tensions.

American Society

A complex entity characterized by a diverse population, cultural pluralism, and a democratic political system.

Women

Female human beings, often discussed in contexts relating to social, political, economic, and gender rights issues.

Economic Development

The process by which the economic well-being and quality of life of a nation, region, or local community are improved.