Trade Results from

question 39

Multiple Choice

Trade results from

• A) comparative advantage.
• B) absolute advantage.
• C) self-sufficiency.
• D) diminishing returns.

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Definitions:

Scarcity

The essential economic dilemma revolves around the vastness of human aspirations contrasted with the limitations of available resources.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Goods

Tangible products or commodities that are manufactured or produced for sale or exchange.