A Country That Has an Absolute Advantage in Producing All

question 209

Multiple Choice

A country that has an absolute advantage in producing all goods will

• A) have a comparative advantage in some goods but not all.
• B) produce all goods at lowest opportunity cost.
• C) have a comparative advantage in all goods.
• D) not gain from specialization and trade.

---

Definitions:

Old Northwest

A historical term referring to the territory north of the Ohio River and east of the Mississippi River that was the frontier of the United States in the late 18th and early 19th centuries.

Mason-Dixon Line

A demarcation line originally surveyed in the 1760s that came to symbolize the cultural boundary between the Northern and Southern United States.

Railroad Industry

The sector of the economy involved in the operation of trains and the management of train transportation.

Coal Mining

The process of extracting coal from the ground, which has historically been a major industry in various parts of the world, including the United States and the United Kingdom.