If a Country Exports the Good That It Can Produce

question 27

Multiple Choice

If a country exports the good that it can produce at a low opportunity cost and imports those goods that it would otherwise produce at a high opportunity cost, we say that such trade is based on:

• A)the theory of absolute advantage.
• B)the arbitrage pricing theory.
• C)theory of factor endowments.
• D)the theory of comparative advantage.

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Definitions:

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA.

Conception

The process of a sperm fertilizing an ovum, resulting in the formation of a zygote and the beginning of pregnancy.

Genetic Instructions

The information encoded in an organism's DNA that guides growth, development, and functioning.

Gelatinous Layer

A viscous coating found on many aquatic organisms, which plays roles in protection and adhesion.