Given Two Economic Systems, a and B, If Economy a Has

question 126

Multiple Choice

Given two economic systems, A and B, if economy A has a absolute advantage in the production of widgets, then

• A)fewer inputs are necessary to produce widgets in economy A than in economy B.
• B)economy A must give up less of all other goods to produce widgets than economy B.
• C)economy A is less efficient in the production of widgets than economy B.
• D)economy A would not benefit from the specialization of production.

---

Definitions:

Premium

An amount paid in addition to a standard price, often for a higher quality or more expedited service.

Debt Financing

Raising capital through borrowing money that must be repaid over time, typically with interest.

Startup Company

A newly established business, often in the tech or innovation sectors, that aims to meet a marketplace need by developing a viable business model around a product, service, platform, or idea.

Commercial Finance Companies

Financial institutions that provide loans to businesses using accounts receivable, inventory, equipment, and property as collateral.