Suppose That Only Two Goods Are Produced in an Economy

question 84

Multiple Choice

Suppose that only two goods are produced in an economy. If a country possesses a comparative advantage at producing one good, then it:

• A) must also possess a comparative advantage at producing the other good.
• B) must also possess an absolute advantage at producing that good.
• C) cannot also possess a comparative advantage at producing the other good.
• D) cannot also possess an absolute advantage at producing that good.

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Definitions:

PR Plans

Strategic documents prepared by public relations professionals to outline objectives, tactics, and activities for managing an organization's public image and communications.

Time Consuming

Activities or tasks that require a considerable or excessive amount of time to complete.

Situation Analysis

An evaluation process that identifies an organization's internal strengths and weaknesses, along with external opportunities and threats.

Strategic Plan

A systematic process for envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.