Labor Productivity Differences Are the Only Explanation Given by Economists

question 48

True/False

Labor productivity differences are the only explanation given by economists to address the question of why countries produce the goods they do.

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Definitions:

Economic Profit

The difference between total revenues and the total costs of a firm, including both explicit and implicit costs.

Gas Station

A retail business establishment that sells fuel and engine lubricants for motor vehicles.

Prices Charged

The amount of money demanded by a business in exchange for its goods or services.

Long Run

A period during which all factors of production and costs are variable, allowing firms to adjust to desired levels.