Suppose That Only Two Goods Are Produced in an Economy

question 8

Multiple Choice

Suppose that only two goods are produced in an economy.If a country possesses the comparative advantage in the production of one good:

• A)then it must also possess the comparative advantage in the production of the other good.
• B)then it must also possess the absolute advantage in the production of that good.
• C)then it cannot also possess the comparative advantage in the production of the other good.
• D)then it cannot also possess the absolute advantage in the production of that good.

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Definitions:

Commencement

The act or time of beginning; refers to the start of something, such as a process, event, or period in time.

Bankruptcy Legislation

Refers to laws that govern the process through which individuals or entities who are unable to meet their financial obligations can seek relief from some or all of their debts.

Dual Purpose

Refers to an item or activity designed for two distinct functions or goals, often seen in tax, legal, or functional contexts.

Dischargeable Debts

Debts that can be wiped out or eliminated in bankruptcy proceedings.