Comparative Advantage Is Based on the

question 33

Multiple Choice

Comparative advantage is based on the

• A) concept that some countries are superior to others.
• B) concept of absolute advantage of producing goods in different countries.
• C) concept of relative opportunity cost of producing goods in different countries.
• D) concept that some countries are better endowed with natural resources.

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Definitions:

Required Return

The minimum expected return by investors for investing in a particular asset, considering the risk involved.

Price Appreciation

An increase in the value of an asset over time, not accounting for dividends or interest.

Rate of Return

Rate of return is the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Market Rate of Return

The average or expected return of the marketplace on investments, often used as a benchmark to assess the performance of individual investments or portfolios.