Differentiation Refers to Specific Rather Than Global Actions

question 67

True/False

Differentiation refers to specific rather than global actions.

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Definitions:

Absolute Advantage

The advantage in the production of a good enjoyed by one country over another when it uses fewer resources to produce that good than the other country does.

Resources

The inputs or factors of production, including land, labor, capital, and entrepreneurship, that are used in the creation of goods and services.

Demand

The volume of commodities or services people are inclined and financially capable of purchasing at various price points during a designated time.

Opportunity Cost

Opportunity cost represents the value of the best alternative forgone when a decision is made to choose one option over another.