An Economy Is Said to Have a Comparative Advantage in Producing

question 129

Multiple Choice

An economy is said to have a comparative advantage in producing a particular good if it:

• A) can produce more of all goods than another economy.
• B) can produce less of all goods than another economy.
• C) has the highest cost for producing that good.
• D) has the lowest cost for producing that good.

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Definitions:

Social Obligations

Social obligations refer to the duties or responsibilities imposed by society upon its members, which could involve participating in community service, adhering to societal norms, or fulfilling familial roles.

Making Profits

The process of generating financial gain from business activities after subtracting all expenses, taxes, and costs.

Gaining Prestige

The process of acquiring respect, honor, or recognition from others within a social group.

Marginal Geographical Areas

Areas located at the periphery or edge of regions, often characterized by less favorable conditions for human habitation or agriculture.