Explain the difference between the theories of absolute and comparative advantage.
What will be an ideal response?
The theory of absolute advantage, first proposed by Adam Smith in The Wealth of Nations, argued that states can maximize their wealth by focusing their activities on the product or products they produced better than other countries, and trading with other states for the rest. The theory of comparative advantage, on the other hand, argued that states should focus on producing the products they themselves did better than they did other products—even if they did not produce these things better than another country.
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__________ programs attempt to improve the chances of minority applicants for jobs, housing, employment or education
a. Affirmative Action b. Peonage c. Civil disobedience d. Integration e. Quota programs
Which of these terms is an economic condition characterized by price increases linked to a decrease in the value of the currency?
A) depression B) inflation C) stagflation D) downturn E) recession
Agendas must be constructed, and the issues defined by a ______ and ______ process in a manner that will make them most amenable to political action.
A. complicated; iterative B. consensual; conciliatory C. political; social D. reverse; obverse
Passed in 2010, the Dodd-Frank Wall Street Reform and Consumer Act
A. required warning labels on all "hazardous" consumer goods, such as cigarettes. B. sought to promote environmental protection, consumer protection, and worker safety. C. loosens restrictions on large financial institutions considered "too big to fail." D. empowers government to more closely oversee financial activities. E. allowed low interest rates and small down payments for first-time home buyers and small business entrepreneurs.