Assume That Australia Has a Comparative Advantage in Producing Surfboards

question 164

Multiple Choice

Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia.We can conclude that

• A)Australia also has an absolute advantage in producing surfboards relative to New Zealand.
• B)Australia has a lower opportunity cost of producing surfboards relative to New Zealand.
• C)New Zealand has an absolute disadvantage in producing surfboards relative to Australia.
• D)Labor costs are higher for surfboard producers in New Zealand than in Australia.

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Definitions:

Auditory Cortex

The part of the brain that is responsible for processing auditory information, located in the temporal lobe.

Plasticity

The capacity of the brain to change and adapt in response to experience, learning, or injury.

Temporal Lobes

Regions of the brain located on either side of the brain responsible for processing auditory information and encoding memory.

Split-Brain Surgery

A surgical procedure that involves cutting the corpus callosum to treat severe epilepsy, affecting communication between the brain's hemispheres.