As the General Principle of Comparative Advantage Is Still Valid

question 36

True/False

As the general principle of comparative advantage is still valid, complete specialization remains a realistic case.

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Definitions:

Surplus

An excess of supply over demand in a market, typically resulting in lower prices.

Price Ceiling

A legally established maximum price that can be charged for a good or service.

Shortage

A scenario where the market's supply of a specific product or service is outstripped by consumer demand.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a balance where there is no tendency for the price to change.