When a Country Has a Lower Opportunity Cost in Producing

question 21

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.

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Definitions:

Body Covering

The outermost layer or material that covers the body of an organism, such as skin, fur, feathers, or scales.

Venom

A toxic substance secreted by animals, such as snakes and spiders, often used to immobilize or kill prey and for defense.

Stingrays

Marine cartilaginous fish known for their flat bodies and long, whip-like tails equipped with venomous stingers, used for defense.

Spearlike Point

A sharp, pointed tool or weapon designed for thrusting or throwing, typically narrow and elongated.