Which of the Following Is True About Absolute Advantage Principle

question 20

Multiple Choice

Which of the following is true about absolute advantage principle?

• A)According to this approach, enhanced product specialization adversely affects communal welfare.
• B)This approach allows the nation to consume more than it otherwise could, generally at lower cost.
• C)This is the only approach that can be used to explain why nations attempt to run a trade surplus.
• D)This approach explains the process by which firms acquire and retain one or more value-chain activities inside the firm.

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Definitions:

Cycle

A sequence of operations or events that repeats, such as in machinery operation, biological processes, or computational logic.

Power Line Carrier

A method of transmitting data or communication signals over electrical power lines.

Trailer-to-Tractor Multiplexing

A communication system used in trucking, which allows the electronic control systems of a trailer and tractor to communicate and share information, improving efficiency and safety.

Auxiliary Wire

an additional wire used in electrical systems for supplemental functions, such as grounding or providing alternative circuits.