A Country May Have a Comparative Advantage in the Production

question 34

Multiple Choice

A country may have a comparative advantage in the production of cars if:

• A) it imports most of the raw materials necessary to produce cars.
• B) its citizens prefer driving cars to other forms of transportation.
• C) it has strict environmental protection laws governing automobile emissions.
• D) it has the natural resources needed to produce steel.

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Definitions:

Household Income

The combined gross income of all members of a household, encompassing wages, salaries, benefits, and other income streams.

Wages

Compensation provided to employees for their work, often determined based on the number of hours, days, or items produced.

Salaries

Fixed regular payments, typically paid on a monthly basis, but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker.

Government

The governing body of a nation, state, or community, responsible for creating and enforcing laws, policies, and regulations.