​Whenever a Country Has an Absolute Advantage in the Production

question 125

True/False

​Whenever a country has an absolute advantage in the production of a good, that implies that the country should specialize in the production of that good.

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Definitions:

GDP Deflator

An economic measure that converts output measured at current prices into constant-dollar terms, helping to distinguish between real growth and inflation.

Inflation

The tempo at which the cost of general goods and services escalates, undermining the ability to purchase as time progresses.

Expenditures Approach

A method of computing a country's gross domestic product (GDP) by adding up total consumption, investment, government spending, and net exports.

GDP

Gross Domestic Product, a measure of the economic output of a country within a specified period of time.