If a Nation Has a Comparative Advantage in the Production

question 32

Multiple Choice

If a nation has a comparative advantage in the production of a good it,

• A) can produce that good at a lower opportunity cost than its trading partner.
• B) can benefit by restricting imports of that good.
• C) can produce that good using fewer resources than its trading partner.
• D) must be the only country with the ability to produce that good.

---

Definitions:

Minoan Pottery

Ceramic vessels produced by the ancient Minoan civilization, noted for their elaborate designs, vivid colors, and role in archaeological studies of the culture.

Seafaring

The practice or occupation of traveling and trading by sea, emphasizing maritime culture, navigation, and exploration.

Nature

The collective occurrences of the material universe, encompassing flora, fauna, terrains, and other natural aspects and outputs of the planet, in contrast to human beings or their inventions.

Cycladic Figurines

Small, ancient sculptures from the Cycladic islands of the Aegean Sea, characterized by their abstract, geometric forms and dating from the Early Bronze Age.