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

question 297

Multiple Choice

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

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

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Definitions:

Automobile Manufacturers

Companies engaged in the design, production, marketing, and selling of motor vehicles.

Environmental Impact Statements

Documents required by law for certain projects that explain their potential environmental effects and propose mitigation strategies.

Clean Water Act

United States federal law aimed at reducing pollution and protecting the quality of the nation's waters.

Discharge Permit

Authorization granted by a regulatory body allowing the release of certain pollutants into the environment under specified conditions.