If a Nation Has a Comparative Advantage in the Production

question 42

Multiple Choice

If a nation has a comparative advantage in the production of X, this means the nation

• A)cannot benefit by producing and trading this product.
• B)must give up less of other goods than other nations in producing a unit of X.
• C)has a production possibilities curve identical to those of other nations.
• D)is not subject to increasing opportunity costs.

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Definitions:

Enforceable

Describes a legal agreement or obligation that can be upheld or compelled through legal processes.

Offeree

The person or entity to whom an offer is made, which can be accepted, resulting in a binding contract.

Consideration

In contract law, consideration refers to something of value that is exchanged between parties as part of an agreement.

Promisee

The party in a contract who is to receive the benefit of the promise or action stipulated in the agreement.