X Has a Comparative Advantage Over Y in Producing a Good

question 2

Multiple Choice

X has a comparative advantage over Y in producing a good if

• A) X can produce more of the good than Y can in a given time period.
• B) X has to trade off more than Y does to produce the good.
• C) X has a lower opportunity cost of producing the good than does Y.
• D) X has a higher opportunity cost of producing the good than does Y.
• E) Y can produce more of the good than X can in a given time period.

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Definitions:

New Market

Refers to either a completely unexplored market sector or geographic area where a product, service, or business can expand.

Certain Environment

A specific or defined setting or context in which activities or operations occur.

Factual Information

Data or details that are true and can be verified through evidence or observation, as opposed to opinions or interpretations.

Intuitive Thinking

A cognitive process that involves making decisions or solving problems based on feelings and perceptions without explicit reasoning.