If Spain Can Produce a Particular Product at a Lower

question 13

Multiple Choice

If Spain can produce a particular product at a lower relative cost than Portugal, what kind of advantage does Spain have?

• A) an absolute advantage in its production
• B) a resource advantage for all goods
• C) a production advantage for all goods
• D) a comparative advantage in its production

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Definitions:

Shareholder Approval

The process by which actions affecting a corporation and its governance must be approved by a majority of its shareholders.

Ordinary Course

Activities that are considered part of the normal, day-to-day operations of a business.

Assumes Liabilities

The act of taking on the legal debts or obligations of another party, often in the context of business transactions.

Fundamental Change

A significant alteration in the operation, structure, or nature of a business or organization that fundamentally changes its course or identity.