If One Country Can Produce a Good with Fewer Resources

question 107

Multiple Choice

If one country can produce a good with fewer resources than another country, this is called:

• A) specialisation.
• B) geographic advantage.
• C) comparative advantage.
• D) absolute advantage.

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Definitions:

Negative Relationship

A situation or condition in which an increase in one variable leads to a decrease in another variable.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price over a specific time period.

Demand Curve

The demand curve is a graphical representation showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.