If a Country Has an Absolute Advantage in the Production

question 126

True/False

If a country has an absolute advantage in the production of an item, it must also have a comparative advantage in the production of that item.

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Definitions:

Subsidy

Financial assistance provided by the government or a public body to support businesses, reduce prices, or encourage a particular economic activity.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell.

Subsidy

A form of financial aid or support extended to an economic sector, typically by the government, to promote beneficial economic activities.