When a Country Has a Lower Opportunity Cost in Producing

question 127

Multiple Choice

When a country has a lower opportunity cost in producing a good than any other country,

• A) It has an absolute advantage in producing the good.
• B) It has favorable terms of trade in producing the good.
• C) Consumption possibilities will increase with specialization and trade.
• D) Production possibilities are no longer limited.

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Definitions:

Friendly Merger

A type of corporate acquisition or consolidation that occurs with mutual agreement and cooperation between the companies involved.

Expected Growth

The anticipated increase in value or size of an investment, company, or economy over a specific period.

Synergies

The benefits that result when two or more entities (such as companies) combine to produce a greater value than they could independently.

Return Of Stockholders

Rephrased as the gains or losses realized by investors in a company's shares, reflecting the performance of the investment over time through price appreciation and dividends.