In a Situation Where It Costs the Same to Produce

question 15

Multiple Choice

In a situation where it costs the same to produce a boat domestically as it does to produce it in another country, the boat will generally be produced locally due to _____, a reason that complete specialization by countries does not occur.

• A) a lack of cost-effectiveness in trading some goods such as services
• B) a variation in technical skills from country to country
• C) difference in absolute advantage
• D) transportation costs

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Definitions:

Anal Canal

Terminal portion of the digestive tract.

Internal Sphincter

A ring of muscle that surrounds and closes a natural bodily passageway, functioning involuntarily.

External Sphincter

A circular muscle that helps control the expulsion of feces from the anal canal or urine from the bladder.

Large Intestine

A part of the digestive system responsible for absorbing water and electrolytes, forming and storing feces.