An Economy Is Said to Have a Comparative Advantage If

question 4

Multiple Choice

An economy is said to have a comparative advantage if it:

• A)can produce more of all goods than another economy.
• B)can produce less of all goods than another economy.
• C)has the highest cost of producing a particular good.
• D)has the lowest cost of producing a particular good.

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Definitions:

Bright Mineral Pigments

Natural minerals used to produce vivid colors in paintings and other artworks.

Native Japanese Subjects

Refers to the indigenous people of Japan and their societal roles, cultures, and histories prior to extensive foreign influence.

Supply-of-loanable-funds

The availability of funds for borrowing, influenced by savings and influenced by interest rates in the financial market.

Demand-for-loanable-funds

The desire or willingness of consumers and businesses to borrow money at given interest rates, often depicted in economics as a curve.