The Concept of Comparative Advantage in International Trade Is Based

question 9

Multiple Choice

The concept of comparative advantage in international trade is based on ________ as opposed to absolute costs.

• A)relative prices
• B)absolute prices
• C)opportunity costs
• D)average cost
• E)total cost

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Definitions:

Efficient Tax System

An efficient tax system is one that collects government revenues with minimal economic distortion, allowing for effective allocation of resources without significantly hampering growth.

Deadweight Losses

Economic inefficiencies resulting from market distortions, typically leading to a loss of total societal welfare.

Administrative Burdens

The costs and obligations associated with compliance to rules, regulations, and administrative procedures for businesses and individuals.

Tax Evasion

Tax evasion is the illegal practice of not paying taxes by individuals, companies, or trusts, often by making false declarations or no declarations to tax authorities.