A Nation Has a Comparative Advantage in the Production of Cars

question 118

Multiple Choice

A nation has a comparative advantage in the production of cars over another nation if:

• A)it can produce cars with fewer resources than the other country.
• B)it can produce cars at a lower opportunity cost than the other country.
• C)it can produce cars at a higher opportunity cost than the other country.
• D)it can produce cars at the same opportunity cost and its consumers have a stronger preference for cars than consumers in the other country.
• E)it is more self-sufficient in all areas of production, including automobile manufacturing.

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Definitions:

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The outer layer of the brain involved in complex functions such as thought, perception, memory, and decision-making.

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A cognitive process characterized by the ability to understand complex concepts, solve problems in new ways, and think critically about various subjects.

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The natural or instinctive physiological desire for sexual activity or expressions.

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Set of assumptions about the likely causes of abnormality and appropriate treatments.