A Comparative Advantage Is

question 4

Multiple Choice

A comparative advantage is:

• A) the best strategy
• B) long experience in production of a good
• C) lowest costs of production of a good
• D) lowest opportunity cost of producing a good

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Definitions:

Nonprice Rationing

Methods of distributing goods or services using criteria other than price, such as queues or rationing cards.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, aimed at protecting consumers from rapid price increases.

Queuing

Waiting in line as a means of distributing goods and services: a nonprice rationing mechanism.

Excess Demand

A situation where the quantity demanded of a good or service exceeds its supply at the current price.