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Why Is It Likely That the United States Has an Absolute

question 151

Essay

Why is it likely that the United States has an absolute advantage in goods and yet it still ends up importing them from other countries?


Definitions:

Substitute Good

A product or service that can be used in place of another to satisfy similar needs or wants, thereby affecting its demand.

Complementary Good

A product or service that is used together with another product or service, increasing demand for one another.

Normal Good

A type of good for which demand increases as the income of the consumer increases.

Popcorn

A type of corn kernel which expands and puffs up when heated, commonly seasoned and served as a snack.

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