Q6. The ability to produce a good or service at a lower opportunity cost than ot
ID: 1212325 • Letter: Q
Question
Q6. The ability to produce a good or service at a lower opportunity cost than other producers incur is known as
a. absolute advantage
b. comparative advantage
c. comparative specialization
d. absolute specialization
Q7. A movement downward toward the right along a typical production possibilities curve represents
a. decreasing production of both goods under consideration
b. increasing production of both goods under consideration
c. increasing production of one good and decreasing production of the other
d. increasing production of one good with no change in production of the other
Q8. The ability of a nation to gain from specialization and exchange is affected by factors such as shipping costs and exchange rates.
a. true
b. false
Q9. The ability to produce a good or service using fewer resources than other producers use is known as
a. absolute advantage
b. comparative advantage
c. comparative specialization
d. absolute specialization
Q10. The opportunity cost of a choice is defined as the value of
a. the next best alternative that must be sacrificed
b. all the alternatives that must be sacrificed
c. the chosen option minus the value of the next best alternative
d. the chosen option minus the value of all the alternatives
Explanation / Answer
6. b. comparative advantage
7. c. increasing production of one good and decreasing production of the other
8. a. true
9. a. absolute advantage
10. a. the next best alternative that must be sacrificed
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