Define Absolute Advantage and Comparative Advantage

question 73

Essay

Define absolute advantage and comparative advantage. Explain how China has an absolute advantage over Canada and how Canada has a comparative advantage over China.

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Definitions:

Empirically

Refers to knowledge or information gained through observation, experience, or experiment rather than through theory or pure logic.

Reaction Formation

Disguising unconscious content by turning it into its opposite.

Repression

A psychological defense mechanism where unpleasant thoughts, feelings, or desires are excluded from conscious awareness.

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, effectively protecting themselves from uncomfortable or painful emotions.