If a Nation Has a Comparative Advantage in the Production

question 45

Multiple Choice

If a nation has a comparative advantage in the production of X, this means the nation

• A) cannot benefit by producing and trading this product.
• B) must give up less of other goods than other nations in producing a unit of X.
• C) has a production possibilities curve identical to those of other nations.
• D) is not subject to increasing opportunity costs.

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Definitions:

Regulatory Policies

Rules or directives made and maintained by an authority to regulate behavior, typically in industries to ensure fairness, safety, and standardization.

Federal Emissions Standards

Regulations enacted by the government to limit the amount of pollutants released into the environment by vehicles and industrial plants.

Health and Safety Regulations

Laws and guidelines designed to ensure the physical well-being of employees in the workplace, minimizing risks and hazards.

CPI (Consumer Price Index)

A measurement that examines the weighted average of prices of a basket of consumer goods and services, usually used to estimate inflation.