The Ability of a Country to Produce a Specific Good

question 56

Multiple Choice

The ability of a country to produce a specific good at a lower opportunity cost than its trading partners is known as

• A)The inequality trap.
• B)The human advantage.
• C)Comparative advantage.
• D)Absolute advantage.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a market.

Dividend Payout Ratio

The proportion of earnings paid out as dividends to shareholders, expressed as a percentage of the company's net income.

Dividends

Payments made by a corporation to its shareholder members, typically out of the company's profits.

Market Price

The price at which an asset or service can be bought or sold in a given market.