A Country with a Comparative Advantage in Producing Computer Chips

question 32

Multiple Choice

A country with a comparative advantage in producing computer chips

• A) Has a lower opportunity cost of producing computer chips than its trading partners.
• B) Can produce computer chips with fewer resources than its trading partners.
• C) Can achieve better terms of trade in selling computer chips than its trading partners.
• D) Has greater capacity to produce computer chips, given its resources, than do its trading partners. Comparative advantage means one can produce a particular good at a lower opportunity cost than others.

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Definitions:

Main Point

The central or most important idea in a discussion, argument, or piece of writing.

Bar Graph

A chart that represents data with rectangular bars with lengths proportional to the values they represent.

Smallest To Highest

Ordering or arranging items based on their size or value, beginning with the smallest and ending with the largest.

Label

To assign a name, category, or description to something for the purpose of identification.