Which Statement Is True

question 113

Multiple Choice

Which statement is true?

• A)Comparative advantage and absolute advantage are identical terms.
• B)A country can have a comparative advantage without having an absolute advantage.
• C)The U.S.has a comparative advantage and an absolute advantage with nearly all of its trading partners.
• D)Trade cannot take place unless each trading partner has an absolute advantage in the production of the good or service that it is trading.

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Definitions:

Output/Input

A ratio that measures the efficiency of production or performance by comparing what is produced (output) to what is consumed or used (input).

Continuous-Process Production

A manufacturing process that produces goods continuously rather than in discrete batches, often used in industries like chemicals, oil, and gas.

Chemical Plants

Facilities where chemical processes are conducted on an industrial scale, primarily for the production of chemicals and materials.

Oil Refineries

Industrial plants where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel, and jet fuel.