Refer to the Information Provided in Figure 18

question 82

Multiple Choice

Refer to the information provided in Figure 18.2 below to answer the questions that follow. Figure 18.2
-Refer to Figure 18.2. England has an absolute advantage in producing

• A) trucks.
• B) both cars and trucks.
• C) cars.
• D) neither cars nor trucks.

---

Definitions:

Medium of Exchange

A go-between resource or framework designed to support the transfer, acquisition, or exchange of commodities among participants.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.

Foregone Interest

The potential interest income lost by choosing an alternative investment or spending decision instead of the present option that yields interest.

FDIC Insurance

A federal guarantee of safety for depositor funds in member banks, up to a defined limit.