Select the correct definition of the term "comparative advantage." a. the ability to produce less of a good or service than another over a specifies time period b. the ability to produce a good or service at a higher opportunity cost than another c. the ability to produce a good or service at a lower opportunity cost than another d. a nation offering more favorable trade policy with its allies than with other countries. e. the ability to produce more of a good or service than another over a specified time period QUESTION 8 All of the economic inputs that are required to produce goods and services are called: a. factors of production b. capitalof production c. demand d. supply
Added by Christina C.
Close
Step 1
the ability to produce a good or service at a lower opportunity cost than another. Show more…
Show all steps
Your feedback will help us improve your experience
Madeline Alzamora and 67 other Macroeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Match each term with the correct definition. economics opportunity cost marginal analysis utility a. The next-best thing that must be forgone in order to produce one more unit of a given product. b. The pleasure, happiness, or satisfaction obtained from consuming a good or service. c. The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity. d. Making choices based on comparing marginal benefits with marginal costs.
Md.Daniyal A.
Which of the following is true when two countries specialize according to their comparative advantage? a. It is possible to increase their total output of all goods. b. It is possible to increase their total output of some goods only if both countries are industrialized. c. One country is likely to gain from trade, while the other loses. d. None of the above is true.
Shalini T.
Kevin C.
Recommended Textbooks
Principles of Economics
Macroeconomics
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD