A country is said to have an absolute advantage in the production of a good when:
A. its opportunity cost of producing the good is lower than another country.
B. it can produce the good using fewer resources than another country.
C. it specializes in the production of the good.
D. it has a favorable exchange rate compared to another country's currency.
Answer: B
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The figure above shows the demand for fruit snacks. Which movement reflects a decrease in demand?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
Suppose that macaroni and cheese is an inferior good and the price of macaroni and cheese rises. Explain the income and substitution effects of this price change
What will be an ideal response?
Without an accepted medium of exchange
A) people would have to rely on gold or silver in order to exchange goods and services. B) goods and services would be exchanged by barter. C) prices are very difficult to determine. D) there would be no trade.
The term "opportunity cost" points out that
A) there may be such a thing as a free lunch. B) not all individuals will make the most of life's opportunities because some will fail to achieve their goals. C) executives do not always recognize opportunities for profit as quickly as they should. D) any decision regarding the use of a resource involves a costly choice.