When Country a Can Produce a Good Using Fewer Absolute

question 126

Multiple Choice

When Country A can produce a good using fewer absolute inputs than any other country,then Country A:

• A) Has an absolute advantage in producing the good.
• B) Has a comparative advantage in producing the good.
• C) Should specialize in producing the good.
• D) Should import the good.

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Definitions:

Sub-Saharan Africa

The region of Africa located south of the Sahara Desert, characterized by diverse cultures, languages, and histories.

Dependency Theory

Views economic underdevelopment as the result of exploitative relations between rich and poor countries.

Modernization Theory

Holds that economic underdevelopment results from poor countries lacking Western attributes, including Western values, business practices, levels of investment capital, and stable governments.

Development Theory

An extensive category of theories that seek to explain the processes, strategies, and mechanisms by which societies progress economically, socially, and politically.