The Ability to Produce at a Lower Opportunity Cost Than

question 16

Multiple Choice

The ability to produce at a lower opportunity cost than someone else is referred to as:

• A)absolute advantage.
• B)comparative advantage.
• C)absolute superiority.
• D)competitive disadvantage.
• E)comparative disadvantage.

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Definitions:

Entropy

Measure of how much the energy of a system is dispersed.

Energy Conversion

The process of changing one form of energy into another, such as solar energy into electricity.

Increasing Entropy

The process by which the disorder or randomness in a system increases, often associated with the second law of thermodynamics.

Diffusion

The process by which molecules spread from areas of high concentration to areas of lower concentration, aiming for equilibrium.