When the Principle of Comparative Advantage Is Used to Guide

question 185

Multiple Choice

When the principle of comparative advantage is used to guide trade, then a country will specialize by producing only

• A) goods for which production takes fewer worker- hour than another country.
• B) goods for which production costs are more than average total costs.
• C) goods with the highest opportunity cost.
• D) goods with the lowest opportunity costs.

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Definitions:

Scooter Assembly

The process of putting together the various components of a scooter to make it ready for sale or use.

Assembly Worker

An individual employed to construct various components into a final product in a manufacturing process.

Raw Materials Inventory Turnover

A measure of how frequently a company uses and replenishes its stock of raw materials within a specific period.

Raw Materials Used

Refers to the basic substances in their natural, modified, or semi-processed state used in manufacturing or production.