A country is said to have an absolute advantage in the production of a good when:
a. its opportunity cost of producing the good is lower than another country.
b. it can produce the good using fewer resources than another country.
c. it specializes in the production of the good.
d. all of these.
Question 2
Which of the following represents the basic principle of public choice theory?
a. Politicians act consistently in the public's interest.
b. Politicians follow their own self-interest and seek to maximize their reelection chances, rather than promote the best interests of society.
c. Politicians act in the public interest once they are elected, but follow their own self-interest and seek to maximize their reelection chances during a political campaign.
d. None of the above answers are correct.
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