The Producer That Requires a Smaller Quantity of Inputs to Produce

question 36

Multiple Choice

The producer that requires a smaller quantity of inputs to produce a certain amount of a good, relative to the quantities of inputs required by other producers to produce the same amount of that good,

• A)has a low opportunity cost of producing that good, relative to the opportunity costs of other producers.
• B)has a comparative advantage in the production of that good.
• C)has an absolute advantage in the production of that good.
• D)should be the only producer of that good.

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Definitions:

Traditional IRA

A type of retirement account that offers tax-deferred growth, with taxes being paid only upon withdrawal in retirement.

Distributions

Money paid out to shareholders from a corporation's earnings or a fund's assets.

IRA Balance

Refers to the total amount of money that is currently saved within an Individual Retirement Account, a tax-advantaged retirement savings account.

401(k) Plan

A retirement savings plan sponsored by an employer that allows workers to save and invest a portion of their paycheck before taxes are taken out.