Related to the Economics in Practice on page 666: Trade ________ comparative advantage of countries and ________ the efficiency of firms.

A) exploits; improves
B) exploits; reduces
C) inhibits; improves
D) inhibits; reduces

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient international trade.

Economics

The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided.

Efficiency

The condition in which the economy is producing what people want at least possible cost.