When states specialize in producing the goods that they produce best and trading for goods that other states are better at producing, they are operating according to __________.

A. the comparative advantage
B. the absolute advantage
C. transaction costs
D. patterns of trade

Answer: A

Political Science

You might also like to view...

Write an essay in which you discuss the ways that Congress can check the judiciary.

What will be an ideal response?

Political Science

Which example best demonstrates a legislator acting as a trustee of his or her constituency?

a. considering public opinion, then using his or her own best judgment about what is good for the nation as a whole b. doing whatever is best for reelection c. following the public opinion of the constituency, regardless of his or her personal viewpoint d. heeding public opinion in every case, except in matters of personal conscience

Political Science