If a Nation Has a Comparative Advantage in the Production

question 42

Multiple Choice

If a nation has a comparative advantage in the production of X, this means the nation

• A)cannot benefit by producing and trading this product.
• B)must give up less of other goods than other nations in producing a unit of X.
• C)has a production possibilities curve identical to those of other nations.
• D)is not subject to increasing opportunity costs.

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Definitions:

Scientific Conclusion

A scientific conclusion is a final statement that summarizes the findings of a scientific investigation, based on evidence and reasoning.

Hypothesis

A proposed explanation for a phenomenon, based on limited evidence as a starting point for further investigation.

Test Evidence

Demonstrable data or documents that support the validity or reliability of a specific hypothesis, theory, or assessment tool.

Optimality Theory

A principle suggesting that organisms behave in ways that maximize their fitness, balancing the costs and benefits of each action.