Even If the United States Is More Efficient in the Production

question 49

Multiple Choice

Even if the United States is more efficient in the production of everything than China, both countries will benefit from their bilateral trade by specializing in what each country can produce relatively more efficiently.This statement is an example of which economic theory?

• A)relative cost advantage
• B)supply and demand
• C)concentric advantage
• D)comparative advantage
• E)constructive advantage

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Definitions:

Business Cycle

The natural rise and fall of economic activity over time, characterized by periods of expansion and contraction.

African American Workers

Individuals of African descent in the United States who are part of the labor force, facing both historical and modern-day challenges and opportunities in the workplace.

Unemployment Rate

The rate of people in the workforce who are jobless and in active pursuit of employment.

Frictionally Unemployed

Individuals temporarily out of work while transitioning between jobs or looking for their first jobs.