Assume That Bulgaria Has a Comparative Advantage in Producing Sandals

question 68

Multiple Choice

Assume that Bulgaria has a comparative advantage in producing sandals and Finland imports sandals from Bulgaria.We can conclude that

• A)Bulgaria also has an absolute advantage in producing sandals relative to Finland.
• B)Bulgaria has a lower opportunity cost of producing sandals relative to Finland.
• C)Finland has an absolute disadvantage in producing sandals relative to Bulgaria.
• D)labour costs are higher for sandal producers in Finland than in Bulgaria.

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Definitions:

Aversive Training

A behavioral training technique that involves using unpleasant stimuli to discourage undesirable behaviors.

Avoidance

A behavioral response aimed at evading an unpleasant, harmful, or threatening situation.

Punishment

A consequence applied to reduce the likelihood of a behavior reoccurring, often seen as negative or undesirable.

Superstitious Behavior

Actions linked to beliefs in supernatural causality, where an event causes an effect without any natural process linking the two.