Use the Table Below to Answer the Following Question

question 2

Multiple Choice

Use the table below to answer the following question. The table outlines the production possibilities of Slavia and Italia for food and clothing. Which of the following is true?

• A) Italia has a comparative advantage in producing both food and clothing.
• B) Italia is the low-opportunity cost producer of clothing.
• C) Slavia is the low-opportunity cost producer of food.
• D) Italia has a comparative advantage in producing food.

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Definitions:

Stop-Loss

An order placed with a broker to buy or sell once the stock reaches a certain price, designed to limit an investor's loss on a security position.

Shelf Registration

Advance registration of securities with the SEC for sale up to 2 years following initial registration.

Primary Market

The financial market for new issues of securities, where buyers purchase directly from the issuer.

Stop-Buy Order

An order to purchase a security once its price surpasses a particular point, typically to limit a loss or protect a profit on a short sale.