Refer to the Graphs

question 30

Multiple Choice

Refer to the graphs. Terryville has a comparative advantage in producing

• A)product A.
• B)product B.
• C)both products A and B.
• D)neither product A nor B.

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Definitions:

Tax

Compulsory financial charges imposed by a government on individuals and organizations to fund public expenditures.

Good

An item or product that satisfies a want or need, available for sale or trade.

Market Demand

The total quantity of a good or service that all consumers in the market are willing and able to purchase at different prices.

Market Supply

The total quantity of a good or service that all producers in a market are willing and able to sell at various price levels.