An Individual Has an Absolute Advantage in Producing Pizzas If

question 78

Multiple Choice

An individual has an absolute advantage in producing pizzas if that individual:

• A)has a lower opportunity cost of producing pizzas than anyone else.
• B)can produce more pizzas in a given amount of time than anyone else.
• C)has a higher opportunity cost of producing pizzas than anyone else.
• D)charges the lowest price for pizzas.

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Definitions:

Periphery

Poor countries that are exploited for their raw materials by core countries.

World System Theorists

Scholars who analyze the socio-economic differences and inequalities among countries based on the global division of labor and the distribution of resources.

Modernization Theory

A theory that suggests developing countries will progress economically and socially by adopting Western-style capitalism and cultural values.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by GDP.