Assume That Australia Has a Comparative Advantage in Producing Surfboards

question 164

Multiple Choice

Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia.We can conclude that

• A)Australia also has an absolute advantage in producing surfboards relative to New Zealand.
• B)Australia has a lower opportunity cost of producing surfboards relative to New Zealand.
• C)New Zealand has an absolute disadvantage in producing surfboards relative to Australia.
• D)Labor costs are higher for surfboard producers in New Zealand than in Australia.

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Definitions:

Talcott Parsons

An American sociologist known for his contributions to the development and theory of structural functionalism.

Pattern Maintenance

The ways in which social systems and structures are preserved and sustained through norms, values, and institutions.

Not Really Kin

Relationships or social ties that are not based on blood or legal connections but are formed through personal choice, affection, or social obligation.

Symbolic Interactionists

Sociologists who focus on how individuals interpret and assign meaning to symbols within social interactions.