Given Two Economic Systems, a and B, If Economy a Has

question 275

Multiple Choice

Given two economic systems, A and B, if economy A has a comparative advantage in the production of widgets, then

• A) the inputs necessary to produce widgets in economy A cost less than in economy B.
• B) economy A must give up less of all other goods to produce widgets than economy B.
• C) economy A is less efficient in the production of some goods than economy B.
• D) economy A would not benefit from the specialization of production.

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Definitions:

Public Policy

A system of laws, regulatory measures, courses of action, and funding priorities concerning a given topic promulgated by a governmental entity or its representatives.

Breach Of Warranty

The failure to fulfill the terms of a promise or guarantee made about the quality or durability of a product or service.

Strict Liability In Tort

A legal doctrine that holds an individual or entity liable for damages and loss, regardless of fault, in certain types of hazardous activities.

Defective Product

An item that is flawed or faulty in manufacturing or design, making it unsafe or unfit for its intended use.