If a Country Has

question 272

Multiple Choice

If a country has

• A) an absolute advantage in producing a good, it definitely also has a comparative advantage in producing that good.
• B) an absolute advantage in producing a good, it might or might not have a comparative advantage in producing that good.
• C) a comparative advantage in production of a good, it must also have an absolute advantage in producing that good.
• D) an absolute advantage in producing a good, it definitely will not have a comparative advantage in producing that good.
• E) None of the above answers is correct.

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Definitions:

Business Success

The achievement of financial and operational goals within a business, often measured by profitability, market share, or expansion.

Factors of Production

The resources, including land, labor, capital, and entrepreneurship, utilized in the production of goods and services.

Entrepreneurs

Individuals who start and manage their own business, taking on financial risks in the hope of profit.

Government Intervention

The involvement of a government in a market or economy typically through regulations, policies, or direct actions to influence outcomes like protecting consumers or stimulating economic growth.