In the Theory of Comparative Advantage, a Good Should Be

question 128

Multiple Choice

In the theory of comparative advantage, a good should be produced in that nation where:

• A)the production possibilities line lies further to the right than the trading possibilities line.
• B)its cost is least in terms of alternative goods which might otherwise be produced.
• C)its absolute cost in terms of real resources used is least.
• D)its absolute money cost of production is least.

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Definitions:

Entry Tactic

A strategy employed by businesses to enter a new market, overcome barriers, and compete effectively.

"Make" Tactic

A strategy within businesses to produce goods or services in-house, as opposed to outsourcing from external suppliers.

"Buy" Tactic

A strategy in investment or marketing, suggesting the acquisition of assets or products as a beneficial move.

White-Label Goods

Products produced by one company that another company rebrands to appear as if they had made it.