When a Country Has a Lower Opportunity Cost in Producing

question 17

Multiple Choice

When a country has a lower opportunity cost in producing a good than any other country,

• A)It has an absolute advantage in producing the good.
• B)It has favorable terms of trade in producing the good.
• C)Consumption possibilities will increase with specialization and trade.
• D)Production possibilities are no longer limiteD.Consumption possibilities increase with specialization and trade since a nation can buy some goods cheaper abroad and sell certain domestically produced goods at higher prices abroad.

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Definitions:

Workforce Reduction

The process of decreasing the number of employees in an organization through layoffs, attrition, or other methods, often for cost-cutting measures.

Layoffs

The process of dismissing staff members, frequently because of financial declines, changes in the organizational structure, or efforts to reduce expenses.

Labour Force Participation

The proportion of the working-age population that is engaged in or seeking employment.

Workforce

The collective group of employees or labor force of an organization or economy.