If Spain Can Produce a Particular Product at a Lower

question 13

Multiple Choice

If Spain can produce a particular product at a lower relative cost than Portugal, what kind of advantage does Spain have?

• A) an absolute advantage in its production
• B) a resource advantage for all goods
• C) a production advantage for all goods
• D) a comparative advantage in its production

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Definitions:

Premium

An amount paid for an insurance policy or the amount by which a bond or stock's price exceeds its face value.

Journal Entry

A record in financial accounting that documents a business transaction in the accounting records.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock, representing its official worth.

Quoted Price

The ongoing price tag attached to buying or selling a service or asset.