A country has a comparative advantage in the production of a product if the good's _____ cost in different from the good's _____ cost in another country ?
Correct answer: C. opportunity; opportunity
- A. resource; resource
- B. foreign exchange money
- C. opportunity; opportunity
- D. money; opportunity
Explanation
Comparative advantage is determined by relative opportunity cost, not by absolute resource or money costs. A country has the advantage when its opportunity cost of producing a good is lower than another country's.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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