Which Statement Is TRUE

question 117

Multiple Choice

Which statement is TRUE?

• A) It is virtually impossible for a country to be the low-cost producer of all goods and services.
• B) The benefits of trade depend on absolute advantage, not comparative advantage.
• C) A country could have a comparative advantage in producing everything.
• D) A country that has the absolute advantage in production will also have the comparative advantage.

Comprehend the definition and calculation of opportunity cost and its significance in economic decision-making.

Analyze the effects of trade and specialization on an economy's production and consumption possibilities.

Distinguish between absolute and comparative advantage in trade relationships.

Recognize the conditions under which economies or individuals can benefit from trade, even when one party is more efficient in all areas of production.

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Definitions:

Characters Appear

"Characters Appear" refers to the visual display of textual elements on a screen or output device as a user types or inputs data.

Screen

The part of an electronic device that visually displays information or images.

Print

The action of producing physical copies of documents, images, or data from a computer or other digital devices.

Complementary Colors

Colors opposite each other on the color wheel that, when combined, create high contrast and vibrant looks, often used in design to enhance aesthetics.