What does it mean for a country to have an absolute advantage in producing a product?
What will be an ideal response?
A country has an absolute advantage in producing a product when it has the ability to produce more of that product than competitors when using the same amount of resources.
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Suppose the production of a good results in negative externalities. If all costs are taken into account, then
A. output will be at a lower level than if all costs are not taken into account. B. output will be at a lower level than the socially optimal level. C. the marginal private cost curve will lie above and to the left of the marginal social cost curve. D. a and b E. a, b, and c
These are the shares of the seven firms in Macland’s sweater industry. Sally’s Sweaters: 36%, Jack’s Sweaters: 24%, Mira’s Sweaters: 2%, Nils’ Sweaters: 8%, Hans’ Sweaters: 3%, Pedro’s Sweaters: 7%, Jules’ Sweaters 20%. What is the HH index?
a. 88 b. 7,744 c. 2,398 d. 10,000
The prices at which goods trade are determined by their costs of production
Indicate whether the statement is true or false
A person who makes decisions that are "merely good enough" is called a(n)
a. optimizer. b. rational person. c. satisficer. d. maxi-minimizer.