Question : 41.Comparative advantage refers to a country’s: A. Ability to produce a specific : 1233025

41.Comparative advantage refers to a country’s:   

A. Ability to produce a specific good with fewer resources than another country.

B. Monopoly power in the world market for a specific good.

C. Ability to sell a specific good for a higher price than another country.

D. Ability to produce a specific good at a lower opportunity cost than another country.

42.If a country has a lower opportunity cost in producing a good than its trading partners, then it has:   

A. A comparative advantage in producing the good.

B. Favorable terms of trade in producing the good.

C. An absolute advantage in producing the good.

D. Lower labor costs in producing the good.

43.When a country pursues its comparative advantage:   

A. World output is minimized.

B. Potential gains from trade are minimized.

C. Potential gains from trade are maximized.

D. Imports and exports are equal.

44.If a country pursues its comparative advantage:   

A. Prices will rise throughout the world.

B. Total world population will increase.

C. Market power will rise throughout the world.

D. Total world output will increase.

45.If a country can produce cars with a lower opportunity cost than its trading partners, then it must have a:   

A. Low market price for cars.

B. Comparative advantage in cars.

C. A trade deficit.

D. A trade surplus.

46.If a country can produce rice with a lower opportunity cost than its trading partners, then it must have:   

A. An absolute advantage in the production of all other goods except rice.

B. A comparative advantage in the production of all other goods except rice.

C. An absolute advantage in the production of rice.

D. A comparative advantage in the production of rice.

47.If a country has a comparative advantage in the production of paper:   

A. Its opportunity cost of producing paper is lower than its trading partners.

B. It can produce paper with fewer resources than its trading partners.

C. Its opportunity cost of producing paper is greater than its trading partners.

D. The relative price of paper is higher in that country than its trading partners.

48.If the United States has a comparative advantage in the production of computer software, then:   

A. It can produce software with fewer absolute resources than another country.

B. It can produce software with a lower opportunity cost than another country.

C. It is relatively expensive for the United States to produce software.

D. The United States will import software.

49.Suppose the United States has a lower opportunity cost in producing corn than Japan, and Japan has a lower opportunity cost in producing motorcycles than the United States, then the United States has:   

A. An absolute advantage in producing both corn and motorcycles.

B. A comparative advantage in producing both corn and motorcycles.

C. A comparative advantage in producing corn, while Japan has a comparative advantage in producing motorcycles.

D. A comparative advantage in producing motorcycles, while Japan has a comparative advantage in producing corn.

50.Suppose Chile has a lower opportunity cost in producing salmon than South Korea, and South Korea has a lower opportunity cost in producing cars than Chile, then Chile has:   

A. An absolute advantage in producing both salmon and cars.

B. A comparative advantage in producing both salmon and cars.

C. A comparative advantage in producing cars, while South Korea has a comparative advantage in producing salmon.

D. A comparative advantage in producing salmon, while South Korea has a comparative advantage in producing cars.