The Existence of "Absolute Advantage

question 85

Multiple Choice

The existence of "absolute advantage"

• A)implies that there will be no benefits from trade between two nations.
• B)refers to a situation where one country can produce one unit of a given product with fewer resources than the other country.
• C)fosters the self-sufficiency of nations.
• D)refers to a situation where one country can produce one unit of all goods with fewer resources than can another country.
• E)is not physically possible.

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Definitions:

Divisible Agreement

A contract that can be legally separated into individual obligations, allowing for partial fulfillment.

Illegality

The state or condition of being contrary to law or forbidden by law.

License Fee

A payment required for the permission to use someone else's property or intellectual property rights, such as software, music, or brand names, under specified conditions.

Legal Regulations

Rules or directives made and maintained by authority, governing behavior within a specific system, often within the context of industries, professions, or societal laws.