If Country a Has a Comparative Advantage in the Production

question 74

Multiple Choice

If Country A has a comparative advantage in the production of good X relative to Country B,

• A)then Country A also has an absolute advantage in the production of this good.
• B)then Country A also has an absolute advantage in the production of some good other than X.
• C)then the opportunity cost of producing X in Country A is higher than in Country B.
• D)then the opportunity cost of producing X in Country A is lower than in Country B.
• E)we do not have enough information to say anything about relative opportunity costs.

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Definitions:

Social Stereotypes

Widely held beliefs or oversimplifications about the traits, behaviors, and characteristics of certain groups or categories of people.

Role Congruity Theory

Mainly applied to the gender gap in leadership – because social stereotypes of women are inconsistent with people’s schemas of effective leadership, women are evaluated as poor leaders.

Gender Gap

The disparity in outcomes or attitudes between men and women, often observed in political, economic, or social contexts.

Leadership Positions

Roles or titles within organizations that carry responsibility for guiding or managing groups or individuals.