If One Person Has the Absolute Advantage in Producing Both

question 119

Multiple Choice

If one person has the absolute advantage in producing both of two goods, then that person

• A)must also have a comparative advantage in both goods
• B)cannot benefit from trade
• C)cannot have a comparative advantage in either good
• D)will have the comparative advantage in only one good
• E)should specialize in the production of both goods

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Definitions:

Zooxanthellae

A type of microscopic algae living symbiotically within the cells of coral and other marine organisms, providing them with energy through photosynthesis.

Euphotic Zone

The upper layer of a body of water, such as an ocean or lake, that is illuminated by sunlight and supports photosynthesis.

Zooplankton

Small floating or weakly swimming organisms that are a component of the aquatic food web.

Freshwater Supply

Refers to the availability of water from sources such as rivers, lakes, and aquifers that is not salty and is vital for human consumption, agriculture, and supporting biodiversity.