If Country a Has a Higher Opportunity Cost in Producing

question 196

Multiple Choice

If country A has a higher opportunity cost in producing good X than does country B,then we know that

• A)country B has an absolute advantage in the production of product X.
• B)country B has a comparative advantage in the production of product X.
• C)country A has an absolute advantage in the production of product X.
• D)country A has a comparative advantage in the production of product X.

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Definitions:

Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price in a specified period.

Addicted

A condition characterized by compulsive engagement in rewarding stimuli, despite adverse consequences.

Cigarette Smoking

The act of inhaling and exhaling the smoke produced by burning tobacco in cigarettes, which is harmful to health.

Quitting

The act of stopping or ceasing a habit or activity, often used in the context of giving up harmful habits like smoking.