A Person Has an Absolute Advantage in Producing a Good

question 89

Multiple Choice

A person has an absolute advantage in producing a good if he can

• A) produce it using fewer resources than another person
• B) produce it while sacrificing less than another person in terms of foregone output
• C) corner the market
• D) use other peoples' money to produce it
• E) work out some long term payment plan for financing the good

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Definitions:

Higher Inflation

An economic condition characterized by a significant increase in prices and a decrease in the purchasing value of money.

Annual Output

The aggregate sum of products and services generated by an economy or company within a single year.

Standard of Living

A measure of the economic welfare and the quality of life of a population, based on income, employment, class disparity, poverty rate, and housing affordability.

Productivity

The efficiency of production measured by the output per unit of input.