The Table Given Below Represents Butter and Ham Production by Two

question 26

Multiple Choice

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5

-Which of the following statements is true about comparative advantage?

• A)Comparative advantage exists whenever one person, firm, or nation can do something at higher opportunity costs than some other individual, firm, or nation.
• B)Comparative advantage is interesting theoretically, but it is not relevant when evaluating real-world economic conditions.
• C)Low income countries cannot possibly have a comparative advantage in the production of any good or service because of the relatively low literacy rate.
• D)Comparative advantage exists whenever one person, firm, or nation can do something at lower opportunity costs than some other individual, firm, or nation.
• E)Only technologically advanced economies can have a comparative advantage in the production of a good or service.

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Definitions:

Candle Flame

The visible, luminous part of a candle fire, which emits light as a result of combustion.

Night

The period of time between sunset and sunrise, characterized by darkness due to the absence of direct sunlight.

Wavelengths

Wavelengths refer to the distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.

Colors

The aspect of things that results from the light they emit, transmit, or reflect, which is perceived by the eye and interpreted by the brain.