When a Country Has a Comparative Advantage in Producing a Certain

question 3

Multiple Choice

When a country has a comparative advantage in producing a certain good,

• A)the country should import that good.
• B)the country should produce just enough of that good for its own consumption.
• C)the country's opportunity cost of that good is high relative to other countries' opportunity costs of that same good.
• D)None of the above is correct.

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Definitions:

Monthly Rent

The periodic payment made by a tenant to a landlord for the use of a property or space.

Historical Costs

Refers to the original monetary value of an asset or transaction, without adjusting for inflation or changes in purchasing power over time.

Irreversible Costs

Expenditures that cannot be recovered once they have been made, also known as sunk costs.

Economists

Experts in the study of economics, focusing on the production, distribution, and consumption of goods and services, and the theory and management of economies or economic systems.