If Country a Can Produce Computers More Efficiently Than Country

question 196

Multiple Choice

If country A can produce computers more efficiently than country B, then trade theory tells us that

• A)country A has an information advantage in computer production.
• B)country A has an opportunity cost advantage in computer production.
• C)country A has an absolute advantage in computer production.
• D)country A has a production advantage in computer production.
• E)country A has a comparative advantage in computer production.

Grasp the concept of optimal consumer choice and how it is determined on a graph.

Recognize the relationship between goods' characteristics (inferior, normal, substitutes, complements) and consumer choice behavior under income changes.

Understand the income and substitution effects of price changes on consumer choice.

Learn how the theory of consumer choice demonstrates key economic principles such as trade-offs.