What is the difference between comparative advantage and absolute advantage?
What will be an ideal response?
Absolute advantage refers to the ability to produce a good with fewer total resources. Comparative advantage is the ability to produce at the lower opportunity cost. A comparative advantage exists when one has to give up fewer units of the other good than another person or country.
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When potential GDP increases, the potential GDP line ________, and the aggregate supply curve ________
A) shifts rightward; shifts rightward B) shifts rightward; shifts leftward C) shifts leftward; shifts rightward D) shifts leftward; shifts leftward E) shifts rightward; does not shift
A change in the price of a good will shift the indifference curves.
Answer the following statement true (T) or false (F)
Discuss the importance of rural-urban migration as a source of urban population growth in various parts of the developing world, being as specific as you can
What will be an ideal response?
Metering is
a. A form of indirect price discrimination b. A form of direct price discrimination c. An evaluation of a product d. An example of bundling