Country a Has a Comparative Advantage Compared to Country B

question 149

Multiple Choice

Country A has a comparative advantage compared to Country B in the production of shoes if

• A) Country A can produce shoes at a lower monetary cost than Country B can.
• B) Country A can produce shoes using fewer resources than Country B can.
• C) the demand for shoes is higher in Country A than in Country B.
• D) Country A can produce shoes at a lower cost in terms of other goods than Country B can.

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Definitions:

Set Up

The process or action of making something operational or ready for use, especially in a context of preparation or installation.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.

Peanuts

Peanuts are a type of legume or groundnut that is cultivated for its edible seeds, widely consumed globally as a snack, in culinary dishes, or processed into oil and other food products.

Cashews

Edible nuts from the cashew tree characterized by their rich flavor and nutritional content, commonly consumed as snacks or used as ingredients in various dishes.