Assume That Australia Has a Comparative Advantage in Producing Surfboards

question 164

Multiple Choice

Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia.We can conclude that

• A)Australia also has an absolute advantage in producing surfboards relative to New Zealand.
• B)Australia has a lower opportunity cost of producing surfboards relative to New Zealand.
• C)New Zealand has an absolute disadvantage in producing surfboards relative to Australia.
• D)Labor costs are higher for surfboard producers in New Zealand than in Australia.

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Definitions:

Misrepresentation

An untrue assertion of reality presented by one individual to another, resulting in the latter being persuaded to enter into a contract.

Fraud

The intentional deception or misrepresentation made by a person or entity to gain an unfair advantage or to harm another party's interests.

Rectification

The process of correcting or making right an error, especially in legal documents.

Voidable

A term describing a contract or transaction that remains valid until one party takes action to void it, often due to elements like fraud or misrepresentation.