Which Theory States That a Nation Should Produce and Sell

question 16

Multiple Choice

Which theory states that a nation should produce and sell goods to other countries that it produces most efficiently,and buy goods produced more efficiently by other countries?

• A)Comparative advantage.
• B)Absolute advantage.
• C)Mercantilism.
• D)Bilateral advantage.

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Definitions:

Output Per Worker

A measure of labor productivity calculated by dividing total output by the number of workers.

GNP

Gross National Product, which is the total value of all goods and services produced by the residents of a country within a specific time period.

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the total value of all goods and services produced over a specific time period.

Natural Resources

Raw materials and components found in nature that can be used to produce goods and provide services, such as water, forests, and minerals.