A Country Has a Comparative Advantage in a Good If

question 60

Multiple Choice

A country has a comparative advantage in a good if

• A)It can produce more of the good than another country.
• B)It can produce a good at a lower opportunity cost relative to another country.
• C)It can specialize only in two goods.
• D)It always has an absolute advantage in the production of the good.

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Definitions:

Added Decision-Making Authority

Refers to the increase in power or responsibility given to an individual or group to make decisions affecting organizational activities or processes.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance and retention.

Minimum Required Rate Of Return

The lowest acceptable rate of return on an investment, considering its risk and the opportunity cost of forgoing other investments.

Average Operating Assets

The average value of the assets that are used in the normal operations of a business, calculated over a specific period of time.