In a Two-Nation World, Comparative Advantage Means That One Nation

question 123

Multiple Choice

In a two-nation world, comparative advantage means that one nation can produce:

• A)a product with fewer inputs than the other nation.
• B)a product at lower average cost than the other nation.
• C)a product at a lower domestic opportunity cost than the other nation.
• D)more of a product than the other nation.

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Definitions:

Necessities Of Life

Basic needs required for maintaining a healthy existence, such as food, water, shelter, and clothing.

Labor Productivity

The amount of goods and services produced per hour of labor, serving as an important indicator of economic efficiency and competitiveness.

Pizzeria

A restaurant specializing in the preparation and sale of pizza.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced (output) with the number of hours worked to produce those goods and services.