Under the Disaster Risk Decision Tree Model, Which of the Following

question 32

Multiple Choice

Under the disaster risk decision tree model, which of the following conditions would create the HIGHEST incentive to use MORE suppliers?

• A) lower L, lower C
• B) lower L, higher C
• C) higher L, lower C
• D) higher L, higher C
• E) lower L, higher C, lower S

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Definitions:

Absolute Advantage

The ability of a country or individual to produce a good or service more efficiently than others, using fewer resources.

Terms Of Trade

How much of one good exchanges for a unit of another good.

Comparative Advantage

The ability of a country or entity to produce a particular good or service at a lower opportunity cost than others, leading to more efficient international trade.

World Output

The total value of goods and services produced across the globe within a specific time frame, often used to measure the economic performance of the global economy.