If the Opportunity Cost of Producing Corn Is Lower for Ohio

question 64

Multiple Choice

If the opportunity cost of producing corn is lower for Ohio than for Iowa,then:

• A) Iowa should specialize in corn production.
• B) Iowa has the comparative advantage in corn production.
• C) Iowa should export corn to Ohio.
• D) Ohio has the comparative advantage in corn production.

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Definitions:

Classical Economic

A school of thought in economics that emphasizes the role of free markets, limited government intervention, and the importance of economic decisions based on rational self-interest.

Morally Required

Actions or behaviors that are considered necessary according to ethical principles or moral obligations.

Social Responsibility Strategy

A business approach that aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.

Organically Grown Cotton

Cotton cultivated without the use of synthetic pesticides, fertilizers, or genetically modified organisms, focusing on sustainability and environmental wellbeing.