A Country Is Likely to Have a Comparative Advantage in a Capital-Intensive

question 6

Multiple Choice

A country is likely to have a comparative advantage in a capital-intensive activity if it has:

• A)a lot of land relative to its population.
• B)a large amount of capital relative to its landmass.
• C)a higher opportunity cost of producing technology.
• D)None of these is true.

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Definitions:

Variable Expenses

Costs that change in proportion to the activity or volume of operations in a business.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Sales

The total amount earned from selling goods or services over a particular period, usually before any expenses are deducted.

Unit Selling Price

The price at which a single unit of a product is sold to customers, not including any additional fees or taxes.