An Economic Principle That Explains Why Countries Produce Different Goods

question 118

Multiple Choice

An economic principle that explains why countries produce different goods and services is

• A)absolute advantage.
• B)trade as a percentage of GDP.
• C)comparative advantage.
• D)NAFTA.

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Definitions:

Board Feet

A unit of measure for the volume of lumber, representing a piece of wood that is one foot long, one foot wide, and one inch thick or its cubic equivalent.

Pounds

Pounds are a unit of weight commonly used in the British imperial system and United States customary units, equivalent to approximately 0.453592 kilograms.

Dollars

A unit of currency used in various countries, including the United States, characterized by the symbol $.

Freight-In

The cost associated with transporting inventory to a business location, typically considered as part of the inventory cost.