If Country a Can Produce Computers More Efficiently Than Country

question 196

Multiple Choice

If country A can produce computers more efficiently than country B, then trade theory tells us that

• A)country A has an information advantage in computer production.
• B)country A has an opportunity cost advantage in computer production.
• C)country A has an absolute advantage in computer production.
• D)country A has a production advantage in computer production.
• E)country A has a comparative advantage in computer production.

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Definitions:

Natural Gas

A fossil fuel used primarily for heating, cooking, and electricity generation, consisting mainly of methane.

Energy Resources

Various sources of usable energy, such as fossil fuels, nuclear, solar, wind, and hydroelectric power, that can be utilized to produce power.

United States

A country in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions, noted for its diverse geography and cultural wealth.

Canada

is a country located in the northern part of North America, known for its vast landscapes, multicultural cities, and bilingual (English and French) cultural heritage.