In Order to Know Whether a Country Has a Comparative

question 8

Multiple Choice

In order to know whether a country has a comparative advantage in the production of one particular product we need information on at least _ unit labor requirements.

• A)three
• B)five
• C)one
• D)four
• E)two

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Definitions:

Trade Secret

A type of intellectual property comprising formulas, practices, processes, designs, instruments, patterns, or compilations of information that are not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers.

Short Run

A period of time in which at least one input, typically capital, is fixed, and producers can only adjust the variable inputs like labor.

Long Run

A period in economics during which all inputs and operations can be varied, allowing for the adjustment to changes in market conditions or demand.

Very Long Run

In microeconomics, a period of time long enough that technology can change and firms can introduce new products.