A Country Has a Comparative Advantage If It Can Produce

question 143

Multiple Choice

A country has a comparative advantage if it can produce a good or service

• A) at a higher opportunity cost than can other nations.
• B) at a lower opportunity cost than can other nations.
• C) by using less resources than other nations.
• D) that lies outside its production possibilities curve.

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Definitions:

Dominant Strategies

A strategy in game theory that yields the best outcome for a player, no matter what the other players do.

Pollute

To contaminate the natural environment with harmful or poisonous substances, adversely affecting air, water, soil, and ecosystems.

Constant-Sum Game

A situation in game theory where the total gains and losses among participants are distributed equally, so that the sum of benefits and losses is constant.

Dominant Strategies

In game theory, these are strategies that result in the best outcome for a player, no matter what the other players do.