In the Theory of Comparative Advantage, a Good Should Be

question 37

Multiple Choice

In the theory of comparative advantage, a good should be produced in that nation where

• A) the production possibilities line lies further to the right than the trading possibilities line.
• B) its cost is least in terms of alternative goods that might otherwise be produced.
• C) its absolute cost in terms of real resources used is least.
• D) its absolute money cost of production is least.

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Definitions:

Non-relational Characteristic

Refers to attributes or features not based on relationships or connections between entities.

Value

The importance, worth, or usefulness of something, often considered in terms of tangible and intangible benefits.

Biodiversity

The assorted types of organisms found on Earth or within a distinct ecosystem or environment.

Ecosystems

Groups of living beings together with abiotic elements of their surroundings, functioning collectively as a cohesive unit.