If Country X Can Produce a Unit of Good 1

question 52

Multiple Choice

If country X can produce a unit of good 1 at a lower opportunity cost than can country Y, it is correct to state that country X

• A) has a comparative advantage in producing good 1.
• B) has an absolute advantage in producing good 1.
• C) will import good 1 from country Y.
• D) will not produce good 1.

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Definitions:

General Adaptation Syndrome

A model that describes the body's short-term and long-term reactions to stress, developed by Hans Selye.

Set-Point Model

A theory in psychology that suggests individuals have a pre-set level of happiness or well-being, which is largely stable over time despite changes in circumstances.

Homeostasis

The regulatory process organisms use to maintain stable internal conditions despite external changes.

Teratogens

Substances or agents that can cross the placental barrier and produce fetal deformities when taken or absorbed by the mother during pregnancy.