Which of the Following Statements Is True

question 140

Multiple Choice

Which of the following statements is true?

• A) If a nation can produce more of a good than another nation can, it has a comparative advantage in the production of that good.
• B) Comparative advantage results from a lower opportunity cost of production.
• C) Absolute advantage results from having more resources.
• D) Absolute advantage means that an individual or country can produce more of a particular good than can any other individual or country.

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Definitions:

Spells of Unemployment

Periods during which an individual is actively searching for employment but is unable to find work.

Long-Term Unemployment

Refers to individuals who have been jobless for 27 weeks or longer while actively seeking employment during that time.

Labor-Force Participation

The ratio of the working-age group that is involved in the labor market, being either in employment or actively searching for a job.

Since 1950

A phrase indicating a time frame that starts from the year 1950 to the present, often used to denote changes or developments over that period.