A Country Has a Comparative Advantage in the Production of a Good

question 52

Multiple Choice

A country has a comparative advantage in the production of a good if it can

• A)tradeoff producing the good for another good.
• B)produce the good on and remain on its production possibilities frontier.
• C)produce the good at the lowest opportunity cost.
• D)produce more of the good most efficiently.
• E)produce more of the good than another country.

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Definitions:

Birth Rates

The number of live births per thousand people in a population over a given period of time, reflecting the rate at which new individuals are added to the population.

Low-Income Countries

Nations with a gross national income (GNI) per capita significantly lower than that of higher-income countries.

Middle-Income Countries

Nations with a gross national income per capita that falls between the World Bank's defined limits for low-income and high-income countries.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to more money flowing out than coming in.