Multiple Choice
According to the principle of comparative advantage, countries
A) should specialize in the production of goods that they enjoy consuming.
B) with a comparative advantage in the production of every good need not specialize.
C) should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners.
D) should specialize in the production of goods for which they use fewer resources in production than their trading partners.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Comparative advantage, not absolute advantage, determines the
Q9: Suppose the world price is below the
Q11: Exhibit 2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7553/.jpg" alt="Exhibit 2
Q13: Tariffs and quotas cause deadweight losses because
Q16: If a nation has an absolute advantage
Q17: Table 1 shows the units of
Q18: If an economy is operating on its
Q19: Opportunity costs change as an economy moves
Q80: Draw a production possibilities frontier showing increasing
Q99: Explain the difference between absolute advantage and