Refer to the Table Below

question 48

Multiple Choice

Refer to the table below. Pat's opportunity cost of making a pizza is delivering:

• A) 3 pizzas
• B) 2 pizzas
• C) 3/2 of a pizza
• D) 2/3 of a pizza

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Definitions:

Comparative Advantage

A principle stating that if a country produces a good at a lower opportunity cost than another, it has a comparative advantage.

Opportunity Costs

The expense incurred from not selecting the subsequent preferable choice when a decision is made.

Comparative Advantage

The ability of a country or entity to produce a good or service at a lower opportunity cost than others, enabling trade benefits.

Production

A process that transforms resources into goods and services.