If Country a Has a Comparative Advantage in the Production

question 74

Multiple Choice

If Country A has a comparative advantage in the production of good X relative to Country B,

• A)then Country A also has an absolute advantage in the production of this good.
• B)then Country A also has an absolute advantage in the production of some good other than X.
• C)then the opportunity cost of producing X in Country A is higher than in Country B.
• D)then the opportunity cost of producing X in Country A is lower than in Country B.
• E)we do not have enough information to say anything about relative opportunity costs.

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Definitions:

Business Practices

The methods, tactics, and strategies that companies use to conduct business, interact with customers, and compete in the market.

Federal Trade Commission Act

is a U.S. law established in 1914 to promote consumer protection and prevent anticompetitive business practices.

Antitrust Law

Legislation aimed at preventing monopolies and promoting competition among businesses.

Conglomerate Merger

Merger between two companies in unrelated industries.