A country with a comparative advantage in producing computer chips
A. Has greater capacity to produce computer chips, given its resources, than do its trading partners.
B. Has a lower opportunity cost of producing computer chips than its trading partners.
C. Can produce computer chips with fewer resources than its trading partners.
D. Can achieve better terms of trade in selling computer chips than its trading partners.
Answer: B
Economics
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In Figure 3-7 above, the multiplier is
A) 2. B) 0.2. C) 5. D) 2.5.
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When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called
A) producer surplus. B) monopoly profits. C) opportunity cost. D) deadweight loss.
Economics