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.

---

Definitions:

Order Fulfillment

The process of receiving, processing, and delivering orders to end customers.

Support Function

Activities or services that assist core business operations without being part of the direct production of goods or services.

Inventory Control

The supervision of supply, storage, and accessibility of items to ensure an adequate supply without excessive oversupply.

Information Technology

The employment of computers, storage systems, networking, and various physical components, infrastructure, and procedures for generating, processing, storing, safeguarding, and sharing electronic data in all its forms.