The Concept of "Comparative Advantage" Refers to the

question 36

Multiple Choice

The concept of "comparative advantage" refers to the

• A)terms of trade index.
• B)gains from international trade.
• C)ability of one region to produce a commodity with fewer total inputs than another region.
• D)ability of one region to produce a commodity at a lower opportunity cost than another region.
• E)ability of one region to produce a commodity with less labour input than another region.

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Definitions:

Cournot Model

An economic model used to describe an industry structure in which companies compete on the quantity of output they will produce, assuming that their competitor's decisions are fixed.

Stackelberg Model

An economic model of strategic interaction in oligopolistic markets where one firm (the leader) sets its output first and then other firms (followers) set their outputs sequentially.

West's National Reporter System

A comprehensive set of law books that publishes the decisions of state and federal courts in the United States.

State Trial Court

The court of first instance in the state judicial system, where civil and criminal cases are initially tried.