Absolute Advantage

question 99

Multiple Choice

Absolute advantage

• A)is the same as comparative advantage
• B)implies autarky
• C)means that countries of the same size have the same opportunity cost of producing both goods
• D)means that a country can produce more of two goods than another country can
• E)means that a country can produce less of two goods than another country can

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Definitions:

Deflation

A decline in the price level for at least two years.

Keynesians

Economists and thinkers following the theories of John Maynard Keynes, who advocate for active government intervention in the economy to manage demand and avoid economic recessions.

Capitalism

An economic system in which most economic decisions are made by private owners and most of the means of production are privately owned.

Government Intervention

Actions taken by a government to influence the economy beyond its basic regulations, including fiscal and monetary policies.