If One Nation Is Able to Produce a Good at a Lower

question 6

Multiple Choice

If one nation is able to produce a good at a lower opportunity cost than another,it has

• A)an absolute advantage in that good.
• B)a comparative advantage in that good.
• C)a productivity advantage in that good.
• D)a technological advantage in that good.

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Definitions:

Simple Interest

Interest calculated only on the principal amount, or original sum borrowed or invested, without compounding.

Maturity Value

The total amount payable to an investor at the end of a fixed-term investment, including both principal and interest.

Term Deposit

A bank deposit that has a fixed term and typically earns higher interest than regular savings accounts.

Simple Interest Rate

The percentage of interest calculated only on the principal amount of a loan or investment, without compounding.