If a Nation Has an Absolute Advantage in the Production

question 208

Multiple Choice

If a nation has an absolute advantage in the production of a good,

• A)it can produce that good at a lower opportunity cost than its trading partner.
• B)it can produce that good using fewer resources than its trading partner.
• C)it will specialize in the production of that good and export it.
• D)all of these.

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Definitions:

Thermometer

An instrument for measuring and indicating temperature.

Thermostat

a device used to regulate the temperature of a system so that the system's temperature is maintained near a desired set-point.

Drive-Reduction Theory

Approach to motivation that assumes behavior arises from physiological needs that cause internal drives to push the organism to satisfy the need and reduce tension and arousal.

Eating

The act of consuming food for nourishment and energy.