According to the Absolute Advantage Principle, National Prosperity Is the Result

question 19

True/False

According to the absolute advantage principle, national prosperity is the result of a positive balance of trade, achieved by maximizing exports and minimizing imports.

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Definitions:

External Equity

Refers to an organization’s compensation strategy being competitive with what other employers offer for similar jobs in the market.

Wage Curve

A graphical representation showing the relationship between the wage rate and the level of unemployment in an economy.

Relative Worth

The perceived value or importance of something in comparison to other items or factors.

Wage Rates

The fixed amount of compensation paid to an employee per unit of time, often per hour or day.