Which of the Following Best Describes Comparative Advantage

question 26

Multiple Choice

Which of the following best describes comparative advantage?

• A)If a state can produce the highest volume of wool in the world, that state should produce wool regardless of opportunity cost.
• B)If a state can produce equal amounts of wine and wool, that state should produce whichever good is more expensive and desirable in the global economy.
• C)If a state can produce wine at a lower opportunity cost than wool, that state should produce wine even if it could produce more wool than any other state in the world.
• D)States should avoid producing wine, as wool is a more valuable resource to the economy.

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Definitions:

Credit Card Company

A financial institution that issues credit cards, allowing users to purchase goods and services on credit.

Stolen Card

A credit or debit card that has been taken unlawfully from its rightful owner, often leading to unauthorized transactions and financial theft.

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A legal injunction requiring a person or entity to stop an alleged illegal or harmful activity.

Federal Trade Commission

An independent agency of the United States government aimed at promoting consumer protection and eliminating and preventing anticompetitive business practices.