If a Country Has a Lower Opportunity Cost of Producing

question 24

Multiple Choice

If a country has a lower opportunity cost of producing oranges, then this is:

• A) inefficient resource use.
• B) an absolute advantage.
• C) a situation in which oranges should be imported.
• D) a comparative advantage.

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Definitions:

Creature of the State

An entity that is created by and subject to state law, often used to describe municipalities or corporations.

Incorporation Statute

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Perpetual Existence

A characteristic of certain business entities, such as corporations, indicating they can continue indefinitely unless dissolved.

Articles of Incorporation

The legal document filed with a state government to legally establish a corporation, detailing its structure, purpose, and regulations.