A Nation Should Only Import Those Goods for Which It

question 1

Multiple Choice

A nation should only import those goods for which it has

• A)lower opportunity costs than its trading partner
• B)higher opportunity costs than its trading partner
• C)zero transaction costs
• D)lower costs of production than its trading partner
• E)absolute advantage in production compared to its trading partner

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Definitions:

Nosebleed

The loss of blood from the tissue lining the nose, often caused by dry air, injury, or nose picking.

Epistaxis

Nosebleed.

Sneezing

A sudden, involuntary expulsion of air from the nose and mouth due to irritation in the nasal passages.

Fiberglass

A material consisting of extremely fine glass fibers, used in various applications including insulation and reinforcement.