If Nation a Has a Comparative Advantage Over Nation B

question 151

Multiple Choice

If nation A has a comparative advantage over nation B in the production of a product, this implies:

• A) it requires fewer resources in A to produce the good than in B.
• B) the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B.
• C) that nation B could not benefit by engaging in trade with A.
• D) that nation A should acquire this product by trading with B.
• E) that nation A could not benefit by engaging in trade with B.

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Definitions:

Alpine Tundra

A biome found in the high mountain regions of the world, above the tree line, characterized by windswept landscapes, low temperatures, and minimal vegetation.

Tree Line

The highest elevation or latitude line beyond which trees are unable to grow due to unsuitable environmental conditions, such as cold temperatures or lack of moisture.

Snow Line

The lowest altitude area on a mountain where snow remains throughout the year.

Region's Climate

The average weather patterns and conditions typically experienced in a specific geographic region over a long period.