Multiple Choice
Which of the following is an implication of the law of comparative advantage?
A) Countries with small amounts of labor relative to capital should specialize in producing labor-intensive commodities.
B) Since workers in high-income countries utilize larger amounts of capital than workers in less developed nations, trade between capital-rich and capital-poor nations results in the exploitation of labor in the less developed countries.
C) Countries that are high cost producers of agricultural products should trade those products for goods they can produce only at a low opportunity cost.
D) Countries that are low opportunity cost producers of timber products should trade those products for goods they can produce only at a high opportunity cost.
Correct Answer:

Verified
Correct Answer:
Verified
Q133: An improvement in a country's legal system
Q134: If Terrell can produce more bagels in
Q135: Todd owns a truck that he values
Q136: According to the law of comparative advantage,
Q137: Ashley is an attorney and also an
Q139: For most students attending state universities, the
Q140: Figure 2-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7348/.jpg" alt="Figure 2-1
Q141: Use the production possibilities data below to
Q142: Which of the following activities describes the
Q143: If Sean sells Tom a tennis racket