If Country X Can Produce a Unit of Good 1

question 52

Multiple Choice

If country X can produce a unit of good 1 at a lower opportunity cost than can country Y, it is correct to state that country X

• A) has a comparative advantage in producing good 1.
• B) has an absolute advantage in producing good 1.
• C) will import good 1 from country Y.
• D) will not produce good 1.

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Definitions:

Herzberg's Two-Factor Theory

A theory of motivation proposing that job satisfaction and dissatisfaction arise from two different sets of factors: hygiene factors and motivators.

Adam Smith

Known as the father of modern economics, he was an 18th-century philosopher best known for his theories on free market economics and the invisible hand concept.

Self-Interest

What is in the best interest of and benefit to an individual.

Social Exchange

A concept describing how social stability and change occur through the process of transactions agreed upon by individuals or groups.