Individuals and countries specialize because the opportunity cost of producing goods and services:Multiple choice question.is in equilibrium.is constant.varies.is low.

When two countries with different opportunity costs engage in trade based on comparative advantage, the result is:  A. Both countries experiencing increased production and consumption  B. Both countries producing only goods they have an absolute advantage in  C. Both countries experiencing decreased production  D. Both countries producing the same goods

What kind of advantage comes from a country producing a good at a lower opportunity cost than another country is able to do?Multiple choice question.AbsoluteRelativeComparativeOpportunity

2. Assume Ricardian world. With no trade, if a country consumes two goods, it implies thatA) the price of two goods are the same.B) the relative price of one good is the same as the opportunity costs of that good.C) the relative price of one good is the same as the opportunity costs of the other good.D) A good which is consumed more is cheaper than the other good.

Individuals and societies must make choices regarding which goods and services will be produced and consumed because aunlimited wants can only be satisfied by allocating resources efficiently ba country cannot have a comparative advantage in the production of all goods callocating scarce resources efficiently reduces the equitable distribution of goods dincome is not equally distributed to ensure that everyone can participate in the market eresources are insufficient to satisfy the unlimited wants of people

The theory of comparative advantage suggests that countries should specialize in producing goods or services in which they have:Question 45Answera.Lower opportunity costsb.Higher opportunity costsc.Equal opportunity costsd.No opportunity costs