Related to the Economics in Practice on Page 3: According

question 206

Multiple Choice

Related to the Economics in Practice on page 3: According to the Economics in Practice, due to the opportunity cost differential, one would expect ________ children at school when the rains have been plentiful in rural India, and ________ children at school when rural India is suffering from a drought.

• A) more; fewer
• B) fewer; more
• C) the same number of; the same number of
• D) no; all

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Definitions:

Comparative Advantage

The capability of an entity to generate a specific product or offer a service with lesser marginal and opportunity costs compared to others.

Trade Benefits

Trade benefits refer to the advantages a country gains from engaging in international trade, such as increased economic growth, diversity of goods, and improved efficiency.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient economic outcomes.

Production Data

Information and statistics regarding the quantity and quality of goods and services produced within an economy.