The Table Given Below Represents Butter and Ham Production by Two

question 26

Multiple Choice

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5

-Which of the following statements is true about comparative advantage?

• A)Comparative advantage exists whenever one person, firm, or nation can do something at higher opportunity costs than some other individual, firm, or nation.
• B)Comparative advantage is interesting theoretically, but it is not relevant when evaluating real-world economic conditions.
• C)Low income countries cannot possibly have a comparative advantage in the production of any good or service because of the relatively low literacy rate.
• D)Comparative advantage exists whenever one person, firm, or nation can do something at lower opportunity costs than some other individual, firm, or nation.
• E)Only technologically advanced economies can have a comparative advantage in the production of a good or service.

---

Definitions:

Subscription Price

The price at which existing shareholders can purchase additional shares of stock in a company, often at a discount from the current market price.

Ownership Percentage

The fraction or percentage of a company that is owned by an individual or entity, typically expressed as a share of the company's total equity.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash within a year.