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:

Inferential Statistics

A branch of statistics that allows for making predictions or inferences about a population based on a sample.

Probabilities

Quantitative measures that indicate the likelihood of a specific event or outcome occurring.

Associations

Relationships or connections between two or more variables, where changes in one variable are related to changes in another.

Predictions

Forecasts or anticipations about future events based on current evidence or trends.