If Nation a Has an Absolute Advantage Over Nation B

question 99

Multiple Choice

If nation A has an absolute advantage over nation B in the production of a product, this implies that

• 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) nation B could not benefit by engaging in trade with A.
• D) nation A should acquire this product by trading with B.
• E) nation A could not benefit by engaging in trade with B.

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Definitions:

Price Change

A variation in the cost of a good or service over time.

Job Enlargement

The process of adding more tasks to a job to increase its scope and the variety of work performed.

Worker Dissatisfaction

A state where employees are unhappy and dissatisfied with their job conditions, leading to lower productivity and morale.

Basic Task

The fundamental duties or responsibilities associated with a specific job or role within an organization.