Given Two Economic Systems, a and B, If Economy a Has

question 275

Multiple Choice

Given two economic systems, A and B, if economy A has a comparative advantage in the production of widgets, then

• A) the inputs necessary to produce widgets in economy A cost less than in economy B.
• B) economy A must give up less of all other goods to produce widgets than economy B.
• C) economy A is less efficient in the production of some goods than economy B.
• D) economy A would not benefit from the specialization of production.

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Definitions:

Managerial Strategy

A plan of action designed by management to achieve a set of objectives and improve the performance of an organization.

Control System

A set of mechanisms or algorithms designed to regulate or guide the operation of a machine, process, or system.

Compensation Systems

Methods and principles used to reward employees financially for their contributions to an organization, encompassing salaries, bonuses, and benefits.

Manufacturing Firm

A company that produces goods or products using raw materials and various processes such as assembly or fabrication.