Learning- By- Doing Is a Basis for

question 32

Multiple Choice

Learning- by- doing is a basis for

• A) reducing the gains from trade over time.
• B) eliminating opportunity cost.
• C) dynamic comparative advantage.
• D) absolute comparative advantage.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of that good or service consumers are willing and able to purchase, typically downward sloping.

Price

The financial sum necessary for acquiring a good or service.

Willingness to Pay

The utmost expenditure an individual is comfortable making on a good or service, demonstrating the value they attribute to it.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating economic welfare.