According to the Principle of Comparative Advantage, Total Output and Consumption

question 62

Multiple Choice

According to the principle of comparative advantage, total output and consumption levels will be highest when goods are produced in nations according to which of the following conditions?

• A) Opportunity costs are lowest.
• B) Absolute advantages are highest.
• C) Opportunity costs are equal.
• D) Absolute advantages are lowest.

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Definitions:

Organizational Goals

Objectives set by a company or organization aiming to guide its operations towards achieving specific outcomes or fulfilling its mission.

Competitive Advantage

The attributes or conditions that allow a company to produce goods or services better or more cheaply than its competitors.

Centralized Tactical Program

A strategy or operation managed from a single, central location or authority, focusing on short-term goals or responses in a specific area such as military, security, or business operations.

Specialized Skill

A specific ability or expertise that is developed through training or experience and is necessary for certain occupations or tasks.