Because the United States Has ________ Advantage Compared to China

question 143

Multiple Choice

Because the United States has ________ advantage compared to China in producing airplanes,China can buy airplanes from the United States at a ________ opportunity cost than that at which China can produce them.

• A) comparative; lower
• B) comparative; higher
• C) absolute; lower
• D) absolute; higher
• E) None of the above because China will produce airplanes and sell them to the United States.

---

Definitions:

Total Product

The overall quantity of output produced by a firm from a given quantity of inputs.

Constant Rate

A consistent, unchanging speed or pace at which something occurs or changes over time.

Diminishing Marginal Returns

The principle that adding an additional factor of production results in a smaller increase in output after a certain point.

Total Product

The total output or production by a firm using a given amount of inputs within a specific period.