Assume That Australia Has a Comparative Advantage in Producing Surfboards

question 164

Multiple Choice

Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia.We can conclude that

• A)Australia also has an absolute advantage in producing surfboards relative to New Zealand.
• B)Australia has a lower opportunity cost of producing surfboards relative to New Zealand.
• C)New Zealand has an absolute disadvantage in producing surfboards relative to Australia.
• D)Labor costs are higher for surfboard producers in New Zealand than in Australia.

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Definitions:

Cognitive restructuring

A core psychotherapeutic technique that aims to challenge and alter maladaptive thoughts and beliefs to reduce psychological distress and improve wellbeing.

Constructive coping

Strategies or methods used to deal with stress in a healthy and productive manner, focusing on problem-solving and emotional regulation.

Adaptive coping

Strategies or mechanisms that individuals use to manage and navigate stressful situations effectively.

Intrinsic motivation

The drive to engage in an activity for its own sake, rather than for some external reward or pressure.