The Concept of ________ Explains How Trade Between Two Countries

question 154

Multiple Choice

The concept of ________ explains how trade between two countries can make each better off.

• A)absolute advantage
• B)comparative advantage
• C)autarky
• D)trade barriers

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Definitions:

Industry Entry

The process of a new company or business beginning operations in a particular market or industry.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the true profitability of an enterprise.

Demand Schedule

A table that lists the quantity of a good that consumers are willing and able to purchase at various prices.

Marginal Revenue

The additional income earned by selling one more unit of a good or service.