Compare and contrast absolute advantage and comparative advantage
What will be an ideal response?
Absolute advantage refers to the ability of a person or nation to produce a good or service using fewer inputs than another person or nation. In contrast comparative advantage is when a good or service can be produced at a lower opportunity cost than another person or nation.
You might also like to view...
Suppose that at a given level of output, a perfectly competitive firm charges a price of $12 and has average total costs of $10 . If its economic profit is $20,000 . then it must be producing:
a. 40,000 units of output. b. 20,000 units of output. c. 30,000 units of output. d. 10,000 units of output. e. 50,000 units of output.
Which of the following is a problem with common resources?
a. They will be overused because they are rival when used. b. They will be underused because they cannot exclude users who haven’t paid. c They will be overused because they cannot exclude users who haven’t paid. d. They will be underused because they are rival when used.
The president has influence on Federal Reserve policy because
a. he can veto any Fed policy. b. he appoints the board members and the chair. c. he can fire the chair. d. he can replace board members at any time.
What has been TRUE about inflation in the United States since 1960?
A. Inflation rates have been consistently positive. B. Inflation rates have been consistently above 100 percent per year C. The annual rate of inflation has varies around zero percent. D. The nation has experienced persistent deflation.