The Principle of Comparative Advantage Suggests That,if New York and Florida

question 108

True/False

The principle of comparative advantage suggests that,if New York and Florida exchange taxi parts for oranges,each state will be made worse off.

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Definitions:

Saving Rate

The proportion of income that is not spent on consumption but is instead saved or invested.

Productivity

The evaluation of production effectiveness, frequently expressed through the proportion of outputs relative to inputs within the production workflow.

Income

The financial gain earned by an individual or a business, typically through employment, investments, or sales.

Physical Capital

Tangible assets such as buildings, machinery, and equipment used in the production of goods and services.