When One Country Can Produce a Product at a Lower

question 159

Multiple Choice

When one country can produce a product at a lower cost in terms of other goods, that country is said to have

• A) an absolute advantage.
• B) a comparative advantage.
• C) a productive advantage.
• D) an unfair advantage.

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Definitions:

Legal Obligation

A duty enforced by law, requiring an individual or organization to act or refrain from acting in a specific manner.

Statutory Provision

A specific piece of legislation enacted by a governing body that establishes legal requirements or regulations.

Common Law

A system of law based on precedent and customs, originating in England and forming the basis of the legal system in the United States and other countries.

Promise Under Seal

A formal commitment or contract that is legally binding because it is physically sealed, representing a solemn promise.