Assume That the Opportunity Cost of Producing Wheat Is Lower

question 39

Multiple Choice

Assume that the opportunity cost of producing wheat is lower in Australia compared with Malaysia. Further assume that the opportunity cost of producing cars is higher in Australia compared with Malaysia. Which country has a comparative advantage in producing wheat?

• A) Australia and Malaysia.
• B) Australia.
• C) Malaysia.
• D) Both countries have to specialise in producing cars.

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Definitions:

Athlete's Foot

A fungal infection that affects the skin on the feet, known medically as tinea pedis, commonly occurring in environments that are moist and warm.

Tinea Pedis

A fungal infection of the skin on the feet, commonly known as athlete's foot.

Papillomavirus

A type of virus responsible for causing papillomas, such as warts, and some types of cancer, notably cervical cancer, through infection of epithelial cells.

Critical Thinking

The objective analysis and evaluation of an issue to form a judgment, especially valuable in clinical decision-making processes in healthcare.