Comparative Advantage Implies Choosing the Activity That

question 327

Multiple Choice

Comparative advantage implies choosing the activity that

• A) has a high opportunity cost.
• B) is inside the production possibilities frontier.
• C) has the lowest opportunity cost.
• D) does not demand any specialization.

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Definitions:

Corporate Reputation

The perception of a company's trustworthiness, quality, and reliability by the public, customers, and stakeholders.

Shareholder Value

The return on investment that shareholders receive from a company, often seen as a primary goal of businesses, including profit and stock price appreciation.

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public, by practicing ethical and sustainable operations.

Greenwashing

Misleading consumers regarding a firm’s environmental practices or the environmental benefits of a certain product.