When a Nation Has a Comparative Advantage in the Production

question 10

Multiple Choice

When a nation has a comparative advantage in the production of a particular good,

• A) the opportunity cost of producing that good is higher than that of other goods.
• B) the nation can gain from trade.
• C) the comparative advantage encourages self- sufficiency.
• D) the nation tends to avoid specialization.

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Definitions:

Breach of Warranty

Occurs when a seller fails to uphold a claim or promise about a product or service.

Discovered the Defect

Discovering the defect involves identifying a flaw or fault in a product or property, usually after a transaction has taken place, impacting the value or safety of the item.

Time of Contract

The specific moment when a contract is considered to have been formed or agreed upon by all parties involved.

Lost Profits

The potential income that a business could have earned but did not due to a wrongful act such as breach of contract or tort.