A Country Possesses a Comparative Advantage in the Production of a Good

question 214

Multiple Choice

A country possesses a comparative advantage in the production of a good if

• A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners.
• B) it possesses an absolute advantage in the production of this good.
• C) it is able to produce more of this good per hour than can any other country.
• D) all of the above.

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Definitions:

Short-Term Benefit

Refers to immediate rewards or perks provided to employees, including bonuses, sick leave, and temporary incentives.

Long-Term Benefit

Advantages or positive outcomes that accrue over an extended period, often associated with investments or strategic business decisions.

Shareholder Needs

The requirements or interests of individuals or entities that own shares in a corporation, often focused on return on investment.

Price Appreciation

The increase in the value of an asset or investment over time, not including the dividends or interest earned.