The Theory of Comparative Advantage Implies That

question 219

Multiple Choice

The theory of comparative advantage implies that

• A)the United States could have a comparative disadvantage in producing all goods and services.
• B)two countries can have a comparative advantage in production of the same good.
• C)the world gains from trade since it allows production to move to the countries where their opportunity cost is lowest.
• D)the country with the comparative advantage also has an absolute advantage.

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Definitions:

Target Amount

The specific financial goal or budget set for a project, initiative, or investment.

Cost Reimbursable Contract

A type of contract where a contractor is paid for all of its allowed expenses to a set limit plus additional payment to allow for a profit.

Time And Material Contracts

A contractual arrangement that pays for labor at a fixed hourly rate and materials at cost.

Project Risk

Potential problems or uncertainties that could impact the successful completion, quality, or timeline of a project.