When a Country Possesses a Comparative Advantage in the Production

question 63

Multiple Choice

When a country possesses a comparative advantage in the production of one good or service, it:

• A)means that the country's opportunity cost is higher than of the other countries.
• B)discourages specialization.
• C)promotes greater self-sufficiency.
• D)permits gains from trade to be realized due to a more efficient use of resources.
• E)means that the country uses a capital intensive method of production.

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Definitions:

Banned

Prohibited by law or regulation from use, distribution, or production.

Business Entities

Structures established by one or more individuals to conduct business or engage in activities for profit, including corporations, partnerships, and sole proprietorships.

Sole Proprietorship

A business structure owned by a single individual, where there's no legal distinction between the owner and the business.

Liable

Legally responsible or obligated to face consequences, typically in the form of compensations or reparations.