Author Question: A country possesses a comparative advantage in the production of a good if A) the opportunity ... (Read 175 times)

Alainaaa8 · **on:** Jun 29, 2018

A country possesses a comparative advantage in the production of a good if

A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners.
B) it possesses an absolute advantage in the production of this good.
C) it is able to produce more of this good per hour than can any other country.
D) all of the above.

Question 2

The income elasticity of demand is largest for

A) food.
B) clothing.
C) shelter.
D) luxuries.