Explain absolute advantage
What will be an ideal response?
Absolute advantage is the advantage in the production of a product enjoyed by one country over another when it uses fewer resources to produce that product than the other country does.
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The existence of international policy externalities provides an incentive for
A) strategic policy making. B) monetary autonomy. C) optimal currency areas. D) inflationary policy bias.
Monopoly is a market structure in which:
A. a few firms dominate the market. B. one firm makes up the entire market. C. many firms produce identical products. D. many firms produce differentiated products.
The price of a country’s exports relative to the price of its imports is called
a) the export price ratio b) the comparative advantage c) the tariff barrier d) the terms of trade e) the mercantile factor
Which of the following is included in Gross Domestic Product (GDP)?
A. purchases of stocks and bonds by individuals B. sales of financial assets to foreign firms C. purchases of stocks and bonds by firms D. investment spending on capital goods