The Theory of Comparative Advantage Is

question 88

Multiple Choice

The theory of comparative advantage is:

• A) rarely relevant for identifying whether gains from trade can be obtained.
• B) always relevant for identifying whether gains from trade can be obtained.
• C) not true for nations, though it may be true for individuals.
• D) true for nations, but is not true for business or individuals.

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Definitions:

Normal Cost

The standard expenses incurred during the production of goods or services, including direct labor, materials, and overhead costs.

Crash Cost

The extra expense incurred to reduce the duration of a project, often through the addition of resources or overtime work.

Normal Time

Normal time is a measure of the time required to complete a task or operation under normal working conditions, often used in time and motion studies to set standards and expectations.

Crash Duration

The shortest possible time to complete a task or project phase by allocating maximum resources, often resulting in increased costs.