An Economy Is Said to Have a Comparative Advantage in the Production

question 57

Multiple Choice

An economy is said to have a comparative advantage in the production of a good if it can produce that good:

• A)with more resources than another economy.
• B)with a higher opportunity cost than another economy.
• C)outside its production possibilities curve.
• D)at a lower opportunity cost than another economy.

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Definitions:

Rank Ordering Method

A technique used to prioritize or arrange items in order of importance or relevance, often used in decision-making processes.

Multiperson Comparison

A formal comparison of one manager’s performance evaluations of an employee with ratings provided by another manager.

Superior or Weaker

Terms used to compare the effectiveness, efficiency, or quality of two or more entities.

Bonus

A form of additional compensation provided to employees as a reward for achieving specific goals or exceptional performance.