The Primary Tradeoffs and Relationships Between Resources Include the Following

question 27

Multiple Choice

The primary tradeoffs and relationships between resources include the following:

• A) space vs. equipment.
• B) equipment vs. people.
• C) people vs. space.
• D) all of these answers.

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Definitions:

Comparative Advantage

The ability for a particular individual, commercial entity, or country to produce a certain good or render a service with significantly less opportunity cost compared to opposition.

Domestic Opportunity Costs

The cost of forgoing the next best alternative use of a country's domestic resources.

Capital-Intensive

A type of industry or business that requires large amounts of capital investment in comparison to labor to produce goods or services.

Labor-Intensive

A term describing industries or businesses that require a large amount of human labor relative to capital equipment to produce goods or services.