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:

Purchase Price

The amount of money paid to buy goods or services.

Ordering Supplies

The process of requesting and acquiring necessary materials or stock for business operations, production, or office maintenance.

Large Demand

A significant consumer interest or need for a product or service which often leads to high sales volume.

Expiration Dates

The specified dates after which a product, especially food or medicine, is not guaranteed to be safe or effective and should not be used.