The Largest Share of Total Production in Australia Is

question 44

Multiple Choice

The largest share of total production in Australia is

• A) consumption goods and services.
• B) imported goods and services.
• C) capital goods.
• D) government goods and services.
• E) exported goods and services.

---

Definitions:

Absolute Advantage

The ability of a country, individual, or firm to produce a good more efficiently than another entity using the same amount of resources.

Comparative Advantage

An economic theory that suggests that countries or entities gain and benefit from trading if they specialize in producing goods for which they have a lower opportunity cost.

Trade

The act of buying, selling, or exchanging goods and services between people or entities, within or across borders.

Willingness-To-Pay

The maximum amount that a consumer is prepared to pay for a good or service.