Given Two Economic Systems, a and B, If Economy a Has

question 275

Multiple Choice

Given two economic systems, A and B, if economy A has a comparative advantage in the production of widgets, then

• A) the inputs necessary to produce widgets in economy A cost less than in economy B.
• B) economy A must give up less of all other goods to produce widgets than economy B.
• C) economy A is less efficient in the production of some goods than economy B.
• D) economy A would not benefit from the specialization of production.

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Definitions:

Product Engineer

A professional who designs, develops, and improves products while ensuring they meet manufacturing, cost, and marketing requirements.

Activity Costs

Activity costs refer to the expenses associated with specific activities within a company, such as production, administration, or distribution, used in activity-based costing.

Setup Activity

The tasks involved in preparing equipment or processes for a new production run or activity, often considered in activity-based costing.

Process Engineer

A professional who designs, implements, controls, and optimizes industrial processes, especially continuous ones within the chemical, energy, or manufacturing sectors.