If a Person Has the Lowest Opportunity Cost of Producing

question 111

Multiple Choice

If a person has the lowest opportunity cost of producing a particular good,that person has a(n)

• A) comparative advantage.
• B) absolute advantage.
• C) comparative and absolute advantage.
• D) absolute advantage and a possible comparative advantage.
• E) relative advantage.

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Definitions:

Marshall Plan

An American initiative passed in 1948 to aid Western Europe, in which the U.S. gave over $12 billion for economic recovery post-World War II to counter the spread of communism.

Truman Doctrine

A United States policy, announced by President Truman in 1947, to provide military and economic assistance to countries threatened by communism.

Containment Doctrine

A foreign policy strategy aimed at preventing the expansion of a hostile power or ideology, particularly associated with the United States' approach to the Soviet Union during the Cold War.