If Nation a Requires More Resources to Produce Each Bale

question 51

Multiple Choice

If Nation A requires more resources to produce each bale of cloth than Nation B does, then we say that

• A) Nation A has the absolute advantage over Nation B in producing cloth.
• B) Nation B has the absolute advantage over Nation A in producing cloth.
• C) Nation A has the comparative advantage over Nation B in producing cloth.
• D) Nation B has the comparative advantage over Nation A in producing cloth.

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Definitions:

Long-Term Perspective

An approach to planning and decision-making that considers impacts and outcomes over an extended period, rather than focusing on short-term results.

Entrepreneurial Transformations

The process by which businesses or individuals innovate or change their strategies and operations to adapt to new markets or overcome challenges.

Philanthropist

An individual who seeks to promote the welfare of others, especially by donating large sums of money to charitable causes.

Public School

An educational institution that is funded and operated by the government, offering free education to students.