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:

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.

Strict Product Liability

Refers to a legal doctrine that holds manufacturers, distributors, or sellers liable for distributing a defective product to a consumer.

Requirements

Conditions or capacities needed by a system or product to solve a problem or achieve an objective.

Plaintiff

The party who initiates a lawsuit by filing a complaint with the court, alleging harm or wrongdoing by the defendant and seeking legal relief.