If Country a Has a Comparative Advantage in the Production

question 91

Multiple Choice

If country A has a comparative advantage in the production of good X over country B, then

• A)country A also has an absolute advantage in the production of this good.
• B)the opportunity cost of producing X in country A is higher than in country B.
• C)the opportunity cost of producing X in country A is lower than in country B.
• D)the opportunity cost of producing X in country A is higher or lower than in country B.

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Definitions:

Immediate Memory

The capacity to hold a small amount of information in mind in an active, readily available state for a short period.

Adduction

The movement of a body part toward the central axis of the body.

Abduction

The movement of a limb or body part away from the midline of the body or away from another body part.

Bowed Legs

A condition characterized by outward curving of the legs, typically observed in toddlers as a part of normal growth or as a result of disease such as rickets.