A Nation Has a Comparative Advantage in Producing a Good,if

question 57

Multiple Choice

A nation has a comparative advantage in producing a good,if

• A) it has a higher standard of living than its trading partners.
• B) more people in the country are employed in the production of the good than its trading partners.
• C) it also has an absolute advantage in producing the good.
• D) it has either a greater productivity advantage or a smaller productivity disadvantage.

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Definitions:

Pareto Optimal

A state in resource allocation where it's infeasible to uplift one individual's status without inflicting loss on another.

Allocation

The process of distributing resources or goods among various accounts or individuals, based on specific criteria or decisions.

Well Off

A term used to describe individuals or households that are financially comfortable or affluent.

Cost of Living

The total amount of money required to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and time.