In Portugal,the Opportunity Cost of a Bale of Wool Is

question 60

Multiple Choice

In Portugal,the opportunity cost of a bale of wool is 3 bottles of wine.In England,the opportunity cost of 1 bottle of wine is 3 bales of wool.Given this information,

• A)England has an absolute advantage in wine production.
• B)Portugal has an absolute advantage in wool production.
• C)Portugal has a comparative advantage in wine production.
• D)Portugal has a comparative advantage in wool production.
• E)no trade will occur.

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Definitions:

Problem Recognition

The initial step in the consumer decision process where the consumer identifies a need or realizes the difference between the current and a desired state.

Alternative Evaluation

The process in which consumers compare different products or brands on various attributes to make a purchasing decision.

Consideration Set

A group of brands or products a consumer evaluates when making a purchase decision.

Criteria

Standards or benchmarks used to evaluate or make decisions about something.