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

question 19

Multiple Choice

One country has a comparative advantage in the production of a good if

• A) it has a lower opportunity cost in the production of the good than another country does.
• B) it has a higher opportunity cost in the production of the good than another country does.
• C) it can produce absolutely more than another country.
• D) the quality of its finished good is consistently higher.

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Definitions:

LLCs

Limited Liability Companies, a flexible form of enterprise that blends elements of partnership and corporate structures.

S Corporations

A type of corporation that meets specific IRS requirements, allowing income and losses to be passed through to shareholders and taxed at individual rates.

Royalty Income

Income received from property rights, such as patents, copyrighted works, or mineral rights, often derived from the outcome of one's intellectual property.

Copyrights

Legal rights granted to the creators of original works, protecting them from unauthorized copying, distribution, or creation of derivative works.