Comparative advantage is defined as
A) producing all goods at lower opportunity costs than other countries can.
B) producing more output of all goods than anyone else can.
C) producing one good at a lower opportunity cost than another country can.
D) the ability to produce more output from given inputs than anyone else can.
Answer: C
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Over the past few decades, the price of movie tickets:
A. has risen both in nominal terms and in real terms. B. has risen in nominal terms but has not risen in real terms. C. has fallen in nominal terms and in real terms. D. has risen in real terms but has not risen in nominal terms.
The figure above shows Sam's budget line. Which of the following combinations of gasoline and coffee are available to Sam?
A) 40 gallons of gasoline and 1 pound of coffee B) 1 gallon of gasoline and 20 pounds of coffee C) 16 gallons of gasoline and 12 pounds of coffee D) 12 gallons of gasoline and 16 pounds of coffee