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

question 126

Multiple Choice

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

• A)fewer inputs are necessary to produce widgets in economy A 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 widgets than economy B.
• D)economy A would not benefit from the specialization of production.

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Definitions:

Shaded Area

This refers to the region that is visually differentiated by a darker shade on a graph or diagram, often used to highlight specific sections.

Z-scores

Z-scores are standardized scores indicating how many standard deviations an element is from the mean.

Standard Normal Distribution

A normal distribution with a mean of zero and a standard deviation of one, used in z-tests of statistical significance.

Less Than

A mathematical symbol (<) indicating that the value on the left is smaller than the value on the right.