If a Nation Has a Comparative Advantage in the Production

question 42

Multiple Choice

If a nation has a comparative advantage in the production of X, this means the nation

• A)cannot benefit by producing and trading this product.
• B)must give up less of other goods than other nations in producing a unit of X.
• C)has a production possibilities curve identical to those of other nations.
• D)is not subject to increasing opportunity costs.

---

Definitions:

State-Owned Bridge

A bridge that is owned, financed, and operated by the government or state authorities, indicating public ownership and responsibility.

Public Good

A good that is non-excludable and non-rivalrous, meaning its use by one person does not reduce its availability to others, and no one can be effectively excluded from using it.

Common Resource

A resource like air or water that provides users with tangible benefits but is difficult to exclude non-payers from using, often leading to overuse.

Property Rights

Legal rights and claims governing the use, transfer, and disposal of property, which can apply to both tangible and intangible assets.